Thursday, July 22, 2010

STAKEHOLDERS URGED TO ENSURE SUCCESSFUL IMPLEMENTATION OF NRGP


STAKEHOLDERS URGED TO ENSURE SUCCESSFUL IMPLEMENTATION OF NRGP

Stakeholders involved in the implementation process of the Northern Rural Growth Programme (NRGP), a four year development project targeted at the three Northern Regions and some parts of the Bono Ahafo Region, have been urged to be more serious and very pragmatic towards the successful implementation of the project.


Speaking at a forum with key implementation partners including financial institutions, Regional and District Directors of Agric, famer based organizations, marketing companies, processing firms and input dealers, Roy Ayariga, the National Coordinator of NRGP, said the project was currently being implemented in 12 pilot districts.


The forum was aimed at discussing the potentials and challenges of the approach towards the project, as all stakeholders seek to promote profitable agribusiness for all actors along each commodity value chain.


Mr. Ayariga explained that agricultural credit delivery with regards to the project is often problematic due to the risks associated with it. Adding that, farmers usually complain that the banks release loan funds late or that the approved loan is in adequate. Banks on the other hand, he pointed out also complain that farmer groups don’t apply for the loans on time and that farmers fail to pay back loans.


In recognition of these constraints, Mr. Ayariga noted that the NRGP value chain approach is aimed at establishing sustainable business linkages along the value chain of a particular commodity in such a way that the banks, input dealers, service providers, marketing companies and farmer groups are comfortable in doing business with each other.

As a step towards addressing these challenges, he said farmers are linked backward to input dealers, mechanization service providers, extension technical services, and then forward linkage to marketing and processing companies, saying “this ensures ready inputs and ready markets for the farmers”.


The NRGP National Coordinator also indicated that the project has introduced what it called the cashless credit system whereby service providers like tractor owners in agreement with farmers get their farmlands ploughed for them and the banks pay the tractor service provider and later debit the accounts of the farmer groups. This is to avoid situations whereby some farmers end up squandering cash given to them without doing the work, he explained.


The NRGP which is jointly sponsored by the International Fund for Agricultural Development (IFAD), the African Development Bank (AfDB) and the Ghana Government, is being implemented in the aforementioned regions to help reduce poverty whilst increasing the income levels of rural households on a sustainable basis.


With a seed capital of about 104.34 million dollars, 800 kilometres of feeder roads would be constructed and 270 culverts built to enhance the carting of farm produce from rural communities to market centres and travelling made more convenient and comfortable for people.


Besides, 343 kilometres of trunk roads would be upgraded and 10 bridges built to improve the movement of goods and services in the three Northern Regions. An estimated 372,000 rural households with about three million people are expected to benefit from the programme.


So far, all banks working with NRGP have promptly financed a total of 1255 farmer groups from the three Northern Regions, made up of 7910 men and 3262 women for maize, sorghum and soyabean with an amount of GH¢4,504,364.00 or 45 billion old cedis from their own resources.

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