Ghana secures $119.5m US OPIC insurance cover for major agric projects
After sourcing for funds to strengthen agricultural value chain in the country, Ghana’s Ministry of Food and Agriculture (MOFA) has secured an amount of $119.5 million in political risk insurance from US agency, the Overseas Private Investment Corporation (OPIC).
The Ministry is embarking on some major agricultural projects that will improve the efficiency as well as modernize the sector, bringing much-needed food security to the country and also boost efforts of becoming a regional food exporter.
The project involves the installation of modern silos, grain mills, cold storage and livestock breeding facilities, and computers and other technical equipment to assist in statistical research and agricultural monitoring throughout Ghana.
The project is under the government’s Medium Term Agricultural Sector Investment Plan (2011-2015).
Dr Samuel Dapaah, Chief Technical Advisor at MoFA told ghanabusinessnews.com November 27, 2012 that the project is most likely to begin in 2013.
Dr Dapaah indicated that the funding has to receive both cabinet and parliamentary approvals before the project starts.
Board of Directors of OPIC approved the insurance September 14, 2012. “The OPIC insurance will cover loan financing for the project being raised in the US bond markets by US-owned company Belstar Capital Ltd,” OPIC said in a statement.
“OPIC is proud to be able to support Ghana’s ambitious agricultural modernization programme,” said OPIC President and CEO Elizabeth Littlefield.
Littlefield added “Improving agricultural infrastructure is a critical goal in Africa, and Ghana has the potential to be a leading agricultural producer for both domestic markets and for the region.”
The US agency believes that the Ghana agric project will reduce post-harvest losses and increase agricultural productivity, leading to greater food surpluses for local populations and reducing reliance on imported products.
By Ekow Quandzie