Cessation of funding for Public Fishing Jetties announced by Ministry of Fisheries and Agriculture
The Ministry of Food and Agriculture has decided to discontinue the annual subsidy for its 'Planting for Food and Jobs' (PFJ) programme in 2023, after six years of implementation.
In a meeting with farmer-based organizations earlier this year, the new sector minister, Brian Acheampong, expressed interest in a more sustainable method of financing fertilizers and seeds for farmers. Instead of direct subsidies, the ministry will implement a value chain approach, where aggregators will acquire inputs from the government and distribute them to member-farmers.
This new approach is an alternative way of supporting farmers, as it contrasts the PFJ system wherein the government subsidized seeds and fertilizers for all farmers. But this time, purchases won't be made directly to input distributors. Instead, harvests will be bought by MoFA to cater to government interventions like the School Feeding Programme and others.
Key associations such as poultry farmers and multinationals, including Nestle, will also be targeted for supplies. This new method brings stiff competition for quality delivery from fertilizer distributors, as their products will no longer be subsidized by the government but sold on the open market.
Dr. Charles Nyaaba, the Executive Director of the Peasant Farmers Association of Ghana, said the decision to scrap the subsidy programme wasn't a surprise, as the association has long been advocating for an alternative livelihood system to replace the corruption-dented PFJ. He believes that the new approach will bring quality delivery to farmers through open competition.
However, the PFJ system faced challenges like hoarding, smuggling, and corruption. Last year, the PFAG alleged that contracts were awarded to fertilizer distributors who supplied substandard inputs, while still receiving payment from the government.
In contrast, Ghana's new approach integrates digital technology and private-sector partnerships to provide farmers with access to quality inputs on credit with flexible repayment plans. Platforms like Farmerline link farmers to financing options, quality seeds, fertilizers, and climate-smart advice.
Since moving away from direct subsidies, the system incorporates robust digital registration and verification processes to ensure resources reach their intended beneficiaries. Each farmer is uniquely identified via their Ghana Card number, with their farm and residence georeferenced to prevent duplication or impersonation. Photos are captured and uploaded during input distribution, further enhancing accountability. This digitized input distribution system reduces errors, delivers inputs more transparently and efficiently, and minimizes corruption risks.
In summary, Ghana’s move from an annual fertilizer subsidy under PFJ to financing mechanisms grounded in digital verification, private partnerships, and integrated digital platforms aims to ensure farmers access quality seeds and fertilizers sustainably while minimizing corruption through enhanced transparency and accountability measures enabled by technology.
- The Ministry of Food and Agriculture's new approach for financing fertilizers and seeds aims to sustainably support farmers, implementing a value chain approach that uses digital technology and private-sector partnerships for access to quality inputs on credit with flexible repayment plans.
- Instead of direct government purchases from input distributors, the new method in Ghana will have harvests bought by MoFA to cater to government interventions like the School Feeding Programme, while key associations like poultry farmers and multinationals, such as Nestle, will also be targeted for supplies.
- By incorporating robust digital registration and verification processes, Ghana's new system seeks to minimize corruption risks, ensure resources reach their intended beneficiaries, and deliver inputs more transparently and efficiently, through unique farmer identification via Ghana Card number, georeferencing farms, capturing and uploading photos during distribution, and reducing errors.
