Switzerland commits $10.5M grant to boost Ghana's cashew and oil palm sectors

The Swiss government, through the Swiss State Secretariat for Economic Affairs (SECO), has pledged a grant of US$10.5 million to support Ghana's cashew and oil palm sectors.

According to a report by B&FT, this investment is part of the five-year project, the Second Phase of the Ghana Private Sector Competitiveness Programme (GPSCP II), aiming to achieve 20 percent domestic processing

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Under the auspices of the Tree Crop Development Authority (TCDA), GPSCP II is a collaborative effort between SECO and Ghana, implemented by NIRAS International and Proforest. The initiative targets enhanced trade and competitiveness in the cashew and oil palm value chains, with a focus on sustainable growth and addressing sector-specific challenges.

The project will operate through strategic cooperation partnerships, a rapid response mechanism, and development partnerships with the private sector. The main objectives include harmonizing regulatory frameworks, improving value chain processes, and building the capacity of private sector actors involved in the production value chain.

Ato Simpson, Team Leader for GPSCP II, highlighted the importance of building private sector capacity, especially small businesses in the cashew and oil palm sectors. Challenges such as the lack of modern technology, limited access to credit, and market constraints necessitate the funding initiative to support their growth.

Furthermore, US$1.5 million of the grant will be allocated to the public sector, including ministries, government agencies, and regulatory bodies. This funding aims to assist in developing policies and standards that will contribute to increased domestic processing and consumption.

William Agyapong Quaittoo, Chief Executive of TCDA, expressed gratitude for the significant potential in the tree crop sector. He emphasized the need for investment in the value chain, research, and development to enhance high-value seedlings and increase yields.

Ghana, a leading cashew producer in West Africa, currently faces low local processing and consumption rates. Despite exporting around 350,000 metric tonnes of raw cashew nuts annually, local processing capacity stands at approximately five percent. The GPSCP II project seeks to address this disparity, targeting an increase to 20 percent by the project's conclusion.

The initiative also includes support for TCDA in harmonizing systems and regulatory bodies, enhancing the sector's overall efficiency. Swiss Ambassador to Ghana, Simone Giger, highlighted the strong bilateral relationship between Switzerland and Ghana, expressing the Swiss government's commitment to supporting Ghana's economic development.