GHANA COCOA SECTOR INSTITUTIONAL SUPPORT PROJECT (AFDB-P-GH-KF0-003)

Countries
  • Ghana
Where the impacts of the investment may be experienced.
Financial Institutions
  • African Development Bank (AFDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 11, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Ghana MINISTRY OF FOOD AND AGRICULTURE
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 3.60 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 3.60 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ AFDB website

Updated in EWS Feb 26, 2020

Disclosed by Bank Jan 21, 2020


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Project Description

The cocoa sector, which is the single most important source of income for farmers in Ghana, faces several challenges.
There is a decline in world prices affecting the financial situation of the organization managing the sector, COCOBOD.
There are also structural problems such as the large number of aging or diseased trees, which need to be replaced, the low level of productivity, which discourages farmers from remaining in the sector, and smuggling.

The project aims to finance:

  • new investments in IT solutions will reduce or eliminate leakages so that subsidies reach the farmers, and
  • several studies to generate new knowledge, improve the effectiveness of COCOBOD, encourage private sector participation, enable higher and less volatile farm gate prices, and promote collaboration with Côte d’Ivoire.

    Studies includes an analysis of the challenges involved in private sector input supply and develop an approach appropriate to Ghanain context, and promoting collaboration with Côte d’Ivoire through sharing of information and new research between the countries.

The primary beneficiaries will be cocoa farmers, many of whom are producing below the productive capacity of their cocoa farms and will therefore see their income increase through improved performance in the cocoa sector.

Investment Description
  • African Development Bank (AFDB)

Total cost: 5000000
Currency: UAC

Source(s) of financing
ADF: 5000000

Contact Information

Task Manager: IBRAHIM Amadou, ECGF / no contact details provided at the time of disclosure

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at https://www.afdb.org/en/independent-review-mechanism/.