Ghana mobilises more than GH¢1bn to transform poultry value chain

Ghana’s 24-Hour Economy Secretariat and the Accelerated Export Development Authority have mobilised financing commitments exceeding GH¢1 billion to support the transformation of the country’s poultry value chain.

The initiative is intended to increase domestic chicken production, create employment and reduce Ghana’s dependence on imported poultry meat, according to the Ghana News Agency (GNA).

Financing for the entire chain

The announcement was made during stakeholder discussions on the National Transformation Poultry Programme in Accra.

Arnold Parker, Funding Team Lead at the 24-Hour Economy Secretariat, said the financing would cover several stages of the poultry value chain, including:

• feed production;
• day-old chick supply;
• poultry equipment;
• processing;
• storage;
• veterinary services.

The private-sector financing will involve Absa, Fidelity Bank and Ecobank. The first phase of the programme is expected to mobilise approximately GH¢300 million, with additional financing expected to be mobilised after the initial implementation cycle.

Parker said the funds were ready, but that the necessary structures still had to be established to enable them to be drawn down and effectively deployed across the industry.

The programme will therefore focus not only on increasing production, but also on strengthening the entire poultry value chain, from input suppliers and breeders to processors and off-takers.

Tailored loans for poultry producers

According to Parker, the financing framework will have to reflect the realities of poultry production cycles.

Conventional lending products can place excessive pressure on farmers when repayment schedules do not match the time required to rear birds and market them. Banks and industry stakeholders are therefore expected to develop financing products tailored to poultry operations.

The programme is also linked to Ghana’s export-development strategy, with the objective of positioning locally produced poultry products for regional and international markets.

The Secretariat is expected to work with research institutions, including the Council for Scientific and Industrial Research (CSIR), to improve productivity and promote innovation in the sector.

Ghana remains heavily dependent on imports

The financing announcement comes as Ghana continues to rely heavily on imported poultry products.

According to Ghana’s 2024 Budget Statement, the country consumed approximately 324,047 metric tonnes of poultry meat in 2022, while domestic production stood at 15,000 tonnes. Local production therefore accounted for 4.6% of national demand, leaving a demand-production gap of 95.4%.

The USDA Foreign Agricultural Service forecast Ghana’s 2024 chicken-meat imports at 270,000 tonnes. This figure was a forecast rather than a final import total.

The Ghana National Association of Poultry Farmers estimates that the country spends nearly US$400 million annually on imported poultry products, according to the GNA.

A broader sector challenge

The new financing initiative is intended to address constraints affecting the poultry industry across the value chain rather than production alone.

Access to competitively priced feed, reliable supplies of day-old chicks, suitable equipment, processing capacity, cold storage, veterinary services and working capital remain essential to the development of a competitive domestic sector.

The Ghanaian government had already identified poultry as an area requiring increased support in its 2024 budget. Under the Planting for Food and Jobs (PFJ) 2.0 programme, plans included supplying day-old chicks, vaccines and starter-pack feed to anchor farmers and their out-growers, with the aim of increasing domestic poultry meat production.

The programme’s impact will ultimately depend on how effectively the financing commitments are deployed and accessed by businesses across the poultry value chain.

Source: Ghana News Agency, Ghana Ministry of Finance and USDA Foreign Agricultural Service.