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Ghana to Launch $18.8m Rice Project

The Ministry of Food and Agriculture is set to officially launch the $18.8 million Regional West African Resilient Rice Value Chains Project (REWARD) in November 2026, ahead of the 2027 rice production season.

Agriculture Minister Eric Opoku said the African Development Bank-funded initiative is aimed at addressing major challenges within Ghana’s rice value chain and reducing the country’s dependence on imported rice.

He said the project is expected to be formally launched in the first week of November to ensure that its interventions are operational before the 2027 farming season.

Under the project, about 3,200 hectares of land in Ghana’s northern savannah ecological zone will be developed for rice cultivation. Farmers will also receive improved seeds, mechanisation services and other agricultural inputs to increase productivity.

More than 20,000 smallholder farmers are expected to benefit from the initiative, alongside rice processors, aggregators and other businesses involved in the value chain.

The project forms part of the government’s plan to achieve rice self-sufficiency by 2028, with a target of producing 3.31 million metric tonnes of paddy rice.

According to Mr Opoku, milled rice production rose from approximately 650,000 tonnes in 2024 to 960,000 tonnes in 2025. Despite the increase, domestic production currently satisfies only about 56 per cent of national demand, leaving the country to rely on imports for the remaining 44 per cent.

Government targets rice import bill

Ghana spends an estimated $500 million annually on rice imports, placing pressure on the country’s foreign exchange reserves.

Mr Opoku said the money spent on imports could instead generate income for local farmers, millers and traders if domestic production is expanded.

Government is also working on a policy that would link rice import quotas to investments in local production. Under the proposed arrangement, importers would be required to establish verifiable partnerships with local rice producers before obtaining import permits.

The Minister clarified that the policy would not amount to a ban on rice imports but would encourage importers to invest more in Ghana’s rice industry.

Ten (10) processing centres to receive support

The REWARD project will also facilitate the establishment and upgrading of 10 strategically located rice processing centres, while improving storage facilities and strengthening connections between farmers and markets.

In a separate intervention, Japan has provided a $2.5 million grant to support Ghana’s rice value chain. The assistance includes agricultural equipment such as eight combined harvesters and 11 seed-cleaning machines.

The equipment is expected to arrive in November 2026 as the government steps up efforts to increase domestic rice production and reduce the country’s reliance on imports.

mfnewsgh.com

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