A $20 million financing agreement between the government and the International Fund for Agricultural Development (IFAD) to implement Emergency Support for Rural Livelihoods and Food Systems Exposed to Covid-19 (ESRF) has been approved by Parliament.
ESRF is intended to help mitigate the threat to food production and security, as well as market access against the coronavirus (Covid-19) pandemic and climate change, while protecting livelihoods, incomes and resilience of poor households and vulnerable groups.
The Minister for Monitoring and Evaluation, Dr. Anthony Akoto Osei, presented the agreement to the House on October 8, on behalf of the Minister of Finance, and was referred to the Finance Committee for consideration and report.
Chairman of the Finance Committee, Dr. Mark Assibey-Yeboah, told the House that the project would be implemented in three components, indicating that $13.7 million of the amount agreed upon would be used to secure access to agricultural inputs and food supply for 37,250 beneficiaries, under the first component.
He said it would enable the beneficiary farmers to have timely access to inputs such as seeds and fertilizers to increase yield.
He reported that it would also support 5,000 vulnerable beneficiaries with direct cash transfer and food rations to overcome hunger and prevent nutritional gaps.
“It will also be used to carry out market surveillance to ensure the smooth supply of food items at a fair price, strengthen extension service activities to overcome the challenges to conventional extension activities caused by the Covld-19-related restrictions and contribute to preventing the spread of Covld-19 through awareness messages and supply of protective equipment,” he said.
Another $3.9 million would be used to support income-generation activities and increase the income and diversity of the sources of food and nutrition for target households.
“Financial support will be provided for the poultry and small ruminants’ value-chain under the Rearing for Foods and Jobs module of the government’s Planting for Food and Jobs Programme.
“Additionally, about 1,750 women and youth will be supported with training, capacity building and small equipment such as dryers, canners and blenders for food processing, conservation and preservation-based income generating activities,” he submitted.
Dr. Assibey-Yeboah again reported that $1.5 million would be used to provide stimulus to the agribusinesses (buyers) under the component two to develop marketing linkages with 25,000 smallholders while ensuring that these smallholders had secured income and cash availability after harvest/production.
He disclosed that $136,000 would be used to develop the capacity of faith-based organizations (FBOs) in digital marketing, strengthen their marketing self-reliance and diversify their output markets.
He said $685,000 had been also earmarked for project management, monitoring and evaluation under the third component; and added that the total cost of the ESRF project was estimated at $41.5 million and was expected to be financed through the IFAD loan of $20 million.
There will be estimated co-financing from the government’s financing of the taxes and duties amounting to $5.3 million as well as expected cash contribution of about $£11.2 million from beneficiaries towards the acquisition of subsidized agricultural inputs.
“Other sources of funding from participating development partners included the World Food Programme ($2 million), the Food and Agriculture Organization ($0.4 million) and the Government of Canada ($2.6 million),” he further indicated.
By Ernest Kofi Adu, Parliament House