The government is ramping up efforts to tackle a potential food insecurity crisis caused by the ongoing dry spell in the Northern and Middle Belts.
In response to the dry spell, the government had earlier mobilized funds, temporarily banned grain exports, and prioritized the importation of grains to minimize its impact on the country.
Speaking during a monthly economic update, Finance Minister Dr. Mohammed Amin Adam announced that the government has secured a $1 million insurance policy to safeguard smallholder farmers in the northern region against future droughts.
The policy will provide a $5 million payout in the event of a drought.
“I would like to add that as part of medium-term measures, the government has purchased an insurance policy against future droughts in the northern region. We have purchased an insurance policy by which we are paid a premium of $1 million, and the payout will be $5 million when you experience such droughts. This will cover smallholder farmers in the northern region.”
“So this is one of the instruments that we are using in addition to the irrigation projects that are being done and the small dams that are being dug around the economic enclave projects that we are implementing. These are all measures to build our resilience against droughts and other such unforeseen crises.”
Dr. Amin Adam also highlighted some measures government has put in place to mitigate the impact of the droughts.
“Drought relief support where cash transfers will be provided to the affected vulnerable farmers to partially compensate their losses; and input support where affected farmers in the northern and southern sectors will be provided with inputs to enable them to replant when the rain starts and to boost production during the minor season. These inputs include fertilizer, urea, maize seeds, and rice seeds. The total cost of these proposed interventions is estimated at GH¢8.36 billion ($522.20 million). We envisage that this will be funded from GOG resources complemented by funding and technical support from Development Partners (DPs).”
“His Excellency the President has tasked the Ministers for Finance and Food and Agriculture to oversee the implementation of measures to address the situation. The government remains committed to advancing the Economic Enclave Projects (EEP) under the Ghana Cares Programme, which is set to revolutionise agriculture. By attracting private investments and leveraging development partner resources, the EEP aims to develop large-scale greenfields that will serve as the food baskets of the country and the sub-region, with the private sector leading the charge.”
Story by: Alexander Kuuku Osei-Baidoo | univers.ug.edu.gh
