Background

The U.S. Government's Economic Growth program through USAID is increasing the competitiveness of Ghana's private sector agribusinesses in national, regional and world markets including Europe and the United States. The program is improving the environment for the private sector development, modernizing agriculture and strengthening the private sector's capacity to produce quality farm and agro-processed products.

USAID/Ghana Economic Growth activities include:

Improving the enabling environment: USAID promotes policy reforms to sustain macroeconomic stability; supports strengthening monetary policy through capital market development; facilitates public-private dialogue that informs the policy development process; and supports removing barriers for farm commodities to enter into the marketplace. In addition, USAID supports access to credit by guaranteeing bank loans to enterprises to enable them expand existing firms and respond to market opportunities.

Strengthening the capacity of the private sector to respond to market demands: USAID enhances the capacity of the private sector to conduct export business development training and to integrate smallholder farmers into the export supply chain. The focus is on improving access to markets through better market information, and meeting required food safety, health and phyto-sanitary standards; increasing the production capacity of firms through improved technologies and environmentally sound production practices; improving the management capacity of firms; applying best practices in sustainable resource management in agriculture and eco-tourism; and strengthening business associations to provide better services to their members.

Expanding and improving access to economic and social infrastructure: USAID is assisting to develop and implement a framework for Ghana, promoting reforms of the regulatory framework in the banking sector and developing applications to improve market information for selected non-traditional exports.

Improving economic policy and the business environment: USAID is conducting land tenure research to support dialogues on policy reforms; strengthening multi-donor dialogue on public-private policy; establishing bio-safety law to field test genetically modified crops; and providing graduate training for economists and agricultural specialists.

Improving sustainable management of natural resources and biodiversity: USAID is supporting biodiversity conservation through a community-owned ecotourism activity and an agro-forestry program.

Key achievements of USAID/Ghana Economic Growth program through 2007:

• With USAID support, Ghana became the first post heavily-indebted poor country (HIPC) to enter the international bond markets with a bond issue of $750 million. The bond was oversubscribed by over 400 percent, amounting to $3.7 billion.

• USAID assisted the Government of Ghana in identifying and revising major regulatory constraints affecting the business environment, resulting in the World Bank citing Ghana as a Top 10 reformer in its 2007 and 2008 "Doing Business Report".
  
  
• With USAID support, agri-business in Ghana significantly increased the growth and production of fruit crops for the export market in the following areas:
  
  
  • Expanded the new MD2 pineapple variety demanded by European importers, resulting in a 50 percent increase in production and raising revenue by $5 million.
    
    
  • Increased the value of horticulture exports by $8 million in 2007 through smallholder farmers' compliance with best international farming practices.
    
    
  • Partnered more than 50 local private and public agricultural firms including government agencies, service providers and civil society organizations to increase volumes of exportable horticulture products.
    
    
  • Attracted major international marketers, producers and distributors of quality fresh fruits to explore the potential for the banana sector.