Boosting the Profitability of Ghana’s Rice Sector through the Competitive African Rice Platform

a.    Overview of Ghana’s Rice Sector in Ghana

Rice, also known as Oryza Sativa, is the second most consumed food staple in Ghana. This can be attributed to factors such as urbanization, shift in dietary patterns, and population growth. According to FAOSTAT, Ghana was ranked as the 7th largest producer of West Africa in the Sub-region.  The rice industry in Ghana has proven to be advantageous, offering an opportunity for foreign exchange, food security, and employment opportunities especially for women and youth. In Ghana, different activities are being undertaken in segments of the rice value chain, and these include production, processing, off-taking/aggregation, consumption, etc.

Production and consumption of rice in Ghana have witnessed immense growth. Comparatively, paddy production levels  which stood at 302,000MT in 2010 tripled to 987,000MT in 2023. By 2023, milled rice in Ghana had increased to 622,000 MT  from 181,000 MT in 2010. According to MoFA, in 2020, Ghana’s self-sufficiency rate was 43% (NRDS II, 2021). Ghana depends largely on imported rice to meet its local demand. About 55% of rice domestically consumed in the country worth GHS 6.874 billion was imported between the period of 2017 and 2020. This was disclosed by the former Minister of Trade and Industry during his appearance before Ghana’s parliament in 2021. (GCB Strategy & Commodity Report 2022 )file (gcbbank.com.gh) Rice is imported annually from various countries such as Thailand, Vietnam, India, etc. to Ghana (MoFA) to meet the local demand.

 

b.    Challenges in the rice sector?

The rice sub-sector is faced with numerous challenges, including inadequate storage facilities , lack of modernized infrastructure and machinery for rice processing, inability of farmers to access farm inputs, lack of modernized machinery for rice cultivation, over dependence on  rain-fed farming, high cost of mechanization services, access to finance, lack of certified rice seeds, lack of ready markets, the influx of cheap foreign rice on Ghanaian market, etc. For instance, the General Agriculture Worker Union (GAWU) voiced their discontent in 2024 over the alarming rate at which rice was being illegally imported into Ghana via neighboring nations including Togo, Burkina Faso, and Cote d'Ivoire. According to the group, cheap foreign rice brands that are imported into Ghana compete with locally produced rice brands from Ghana which are 20-30 times cheaper than made in Ghana rice. The lack of a readily available market for their paddy is a consequence of the low level of support for local rice brands, which has trickled down to rice farmers. (The Ghanaian Standard (ghstandard.com) .

c.    What has been done so far….

In the quest to support and solve the challenges of the rice sector in Ghana, both governmental and non-governmental organizations have collaborated to develop initiatives for the rice industry. The Ministry of Food and Agriculture (MOFA) in collaboration with the United Nations Industrial Development Organization (UNIDO) initiated the Technology and Quality Control System for Higher Addition in Post Harvest Processes Project in 2023 to support post-harvest production of rice paddy in Ghana. Furthermore, in collaboration with the Agence Francaise de Development (AFD), the Government of Ghana (GoG) developed a project focused on facilitating the production of food crops to attain food self-sufficiency, output processing and marketing systems. Also, in 2019, the GoG rolled out phase 1 of the Planting for Food and Job (PFJ) initiative for various crops, including rice. Under the PFJ project, the GoG supported rice farmers with 16,382MT of improved rice seeds, 1000 units of rice reapers were distributed to 16 Regional Departments of Agriculture to be further distributed to 247 rice farmers in Ghana.

Non-governmental organizations have also introduced initiatives to support the rice sector. From 2013, the Federal Ministry of Economic Cooperation and Development as well as the Bill and Melinda Gates Foundation have supported the rice sector in Ghana through Competitive African Rice Initiative (CARI) which is currently known as the Market Oriented Value Chains for Jobs and Growth in the ECOWAS Region (MOVE) implemented by the Deutsche Gelleschaft für Internationale Zusammernabeit (GIZ). This project has supported the rice value chain actors in diverse ways such as training of Farmer Based Organizations (FBOs) on various topics such as Conservation Agriculture, Sustainable Rice Production, Financial Literacy, etc. Other interventions of the MOVE-CARI project include but are not limited to the introduction of the Rice Miller Business Academy, the Rice Matching Grant Fund, business linkages, etc. Furthermore, AfricaRice through financial support from the Republic of Korea developed a rice breeding program which was aimed at developing a new generation of paddy with tolerant varieties. Other donors such as AGRA, JICA, African Development Bank, World Bank and many others continue to support the rice sector in Ghana.

Although many initiatives have been developed to support the rice sector in Ghana, some challenges still linger. In striving to address these challenges, Ghana also tries to leverage on regional connections, knowledge and experiences of other producing countries to learn and collectively address challenges that are common to rice producing countries. Some of such measures include the formation of the Competitive African Rice Platform (CARP-Ghana) and Ghana’s membership of the ECOWAS Rice Observatory (ERO).

About ERO

The ECOWAS Rice Observatory is a regional body which is anchored by ECOWAS, with support from developmental partners, with the aim of providing an opportunity for private-public regional and national level dialogue to support the implementation of the rice offensive strategy, and efforts by member countries at harmonizing policies for the rice sector in the subregion. The Observatory also seeks to provide an avenue for access to finance for rice value chain actors such as millers, farmers, etc. in West Africa. The body is headquartered in Abuja, Nigeria, and works through national chapters in its member countries. Currently, within the ECOWAS Rice Observatory, there five national chapters, namely: - Ghana, Nigeria, Sierra Leone, Burkina Faso, and Côte d’Ivoire. The ECOWAS Rice Observatory's visions and objectives are aligned with the ECOWAS Offensive Strategy and are jointly implemented. ERO seeks to support in achieving the aim of the ECOWAS Rice Offensive strategy geared towards self-sufficiency by 2025. It seeks to support in achieving this initiation through the development and implementation of the National Rice Development Strategies (NRDS), reduce the importation of rice into the sub region and ensure the adoption of Good Agricultural Practices. This will ensure food security, job creation and will serve as a means of economic empowerment for women and youth in the sub region.

d.    What is CARP Ghana?

The Competitive African Rice Platform (CARP-Ghana) was established and launched on 2nd November 2022 in Ghana as the national working group of the ECOWAS Rice Observatory. The initiative is a collaborative effort of the UK Foreign, Commonwealth & Developmental office, the Alliance for Green Revolution in Africa (AGRA) and the Deutsche Gesellschaft für Internationale Zusammernabeit (GIZ). The platform serves as a multistakeholder forum which brings together various rice value chain actors to achieve a common voice, advocate for policies through its mother body (ERO) and facilitate swift access to finance leveraging on group strength to increase the sustainability and the competitiveness of the local rice sector. Furthermore, CARP Ghana provides an opportunity to develop an expert pool in the rice sector for Ghana as well as conduct research studies on different subject areas in the sector.                                            

 

CARP Ghana brings together key value chain actors such as millers, researchers, input dealers, marketers, aggregators, famers, developmental agencies, and civil societies, among others. Some well-known organizations with representatives within CARP Ghana include but are not limited to OLAM, Rice Millers Association of Ghana, GIZ, AGRA, Ghana Rice Interprofessional Body (GRIB), Peasant Farmers Association of Ghana, and government organizations, as well as private organizations that work in various segments of the rice value chain. This provides an avenue for the body to ensure adequate representation of the rice value chain and adopt initiatives required to sustain the rice sector in Ghana.

 

 

 

e.    What are the constituents/organs of CARP Ghana

CARP Ghana has four major organs, and they are as follows:

 

                                                    

 

f.     What are the opportunities associated with the formation of CARP Ghana?

Policy Advocacy/Public-Private dialogues:  The Competitive African Rice Platform (CARP) provides an opportunity for lobbying and advocating for policies through public-private dialogue to support, strengthen and sustain Ghana’s rice sector both at the national and regional level.

At the national level, the multi stakeholder platform leverages on the expertise of researchers, analysts, and crop experts, who are knowledgeable and experienced in the rice sector to provide relevant data to back the push for certain policies in the country especially during government negotiations. However, another key avenue which remains to be explored in pushing for relevant policy formulation for Ghana’s rice sector is the involvement of public partners such as MOFA and the Food and Drug Authority (FDA).

On the regional level, CARP Ghana will capitalize on the ECOWAS Rice Observatory, which is the mother body, to influence regional policy for the rice sector. All existing national chapters of ERO, including CARP Ghana, have a seat on the ERO board. This gives CARP Ghana an opportunity to discuss measures to support the rice sector in Ghana, increase collaboration and policy coordination among West African rice-producing countries as well as provide an opportunity for public and private rice value actors to dialogue and identify areas of synergy for developing the rice sector during events such as the ERO annual general assembly meetings. Furthermore, initiatives such as the ECOWAS Rice Offensive Strategy as well as the development of the National Rice Development Strategy (NRDS) aimed at supporting the growth of the rice sector are measures by ERO at the regional level to support its interventionist state with high level of policy coordination.  

Learning and Exchange: CARP Ghana enables rice value chain operators to learn and exchange ideas on essential themes related to increasing the competitiveness and sustainability of Ghana's rice sector. The body stands to benefit from the availability of rice sector industry experts such as farmers, researchers, non-governmental organizations, government agencies, and others to exchange findings, methodology, and other information shared through this platform. Furthermore, CARP Ghana can draw on other national working groups of the ERO network to explore the success factors, lessons learned, research/studies of other countries such as Nigeria, which has improved its self-sufficiency rate.

Gender Equity: Gender is a key social issue affecting the rice sector in Ghana. CARP Ghana provides a mechanism to combat gender inequality within the rice sector. Within CARP Ghana are relevant key stakeholders/civil society organization in the rice value chain with key interest in promoting gender mainstreaming and gender transformative approaches needed to curb the challenge of gender inequality. This includes organizations such as SEND Ghana, GIZ MOVE/CARI, John Agyekum Kuffour Foundation, AGRA, Single Mothers Association, etc. Additionally, one of CARP's five sub-technical committees namely, Equity, Resilience and MLE has been established to monitor, develop, implement and monitor strategies that enable it to better engage its highly productive yet underestimated resources, particularly for women and youth in the rice sector.

Quick and inclusive decision making: Because CARP Ghana has representation from all rice value chain operators, it aids in effective decision making. The inclusion of all value chain participants provides the ideal platform for comprehensive discussion and solution proffering to difficulties within the rice value chain. Furthermore, CARP Ghana has a minimal hierarchical and bureaucratic structure, which eliminates decision-making delays.

Private Sector Development: Private Sector Development is key to boosting the competitiveness and sustainability of the rice sector in Ghana. The sector is made up of about 70% value chain actors such as millers, farmers, etc. This, therefore, calls for the formulation and implementation of initiatives to enhance their capacities and profitability. Initiatives from ERO such as the private sector financing, commercialization, input financing, continuous capacity building and research can be trickled down to boost Ghana’s rice sector through its national working group – CARP Ghana. This, therefore, increases the possibility of improving the self-sufficiency rate of Ghana’s rice sector.

Research and Development: Research is key to achieving self-sufficiency through the establishment of Africa-situated rice varieties, the adoption of Sustainable Rice Production, processing technologies, capacity building, etc. CARP Ghana can leverage on the ECOWAS Rice Observatory initiatives on research and development such as developing rice situated varieties for achieving a profitable and sustainable rice sector in Ghana.

g.    Conclusion

The Competitive African Rice Platform harnesses numerous opportunities for boosting Ghana’s rice sector. Therefore, both governmental and non-governmental organizations can support the Competitive African Rice Platform (CARP) to achieve its mandate of improving Ghana’s rice self-sufficiency rate through the following: Continuous capacity building for members, funding support, research, and many others.

CARP Ghana Chairman

• Name: Yaw Adu Poku

National Coordinator

• Habib Abdulai

 

Author: Cindy Osei Akoma & Issah Nadjo

                                                            References

National Rice Development Strategy II, (2021). Ministry of Food and Agriculture Government of Ghana PO Box M37, Accra, Ghana Tel: +233-302-666567 | Web: mofa.gov.gh

Sector Industry Analysis – Commodities Report (Rice & Sugar) Imports 2022, By GCB Strategy & Research. file (gcbbank.com.gh)

Acquah., E (2024). Illegal Importation of Rice Collapsing Local Indistry – GAWU, Ghana News Agency. Illegal importation of rice collapsing local industry – GAWU | Ghana News Agency (gna.org.gh)

Tanko, M., Ismaila, S., & Sadiq, S. A. (2019). Planting for Food and Jobs (PFJ): A panacea for productivity and welfare of rice farmers in Northern Ghana. Cogent Economics & Finance, 7(1), 1693121.

ECOWAS Commission (2022), Partnership towards establishing a coordination unit – ECOWAS Rice Observatory. PowerPoint-Präsentation (riceforafrica.net)