ADI Proposes $ 2 Billion Bond to Support Agricultural Sector | General news

Ghana's economy has been largely supported by the agricultural sector, but this has not been fully exploited. Commodities, such as avocado, pineapple, coconut, sweet potato, cashew nut, among others, have great value in the international market, but do not have the same value. have not been exploited due to lack of funds to support the sector.

The Alliance for Development and Industrialization (ADI), a think tank, is proposing a US $ 2 billion Commodity Transformation Fund for the agriculture sector. The US $ 2 billion fund is expected to support the entire value chain and adjustment structures such as community-level road infrastructure, farmers' support and contracts, storage, processing, packaging and marketing.

The US $ 2 billion that can be raised through bond issues in the international market could be used to finance the country's five commodities, such as avocado, pineapple, coconut, coconut sweet potato and sweet potato, which have huge potential overseas.

In a press release issued in Accra, ADI is optimistic that this should not be the responsibility of the government but rather the responsibility of the private sector, which should be based on a surveillance system and a structural system capable of to repay the debt.

It would also contribute to the development and expansion of the agricultural sector at the grbadroots, ensuring that the value chain created for these industries is well established to pay for the facility.

According to the statement, "it is only a replica of the agreement between Syno Hydro and Ghana's bauxite … we need the government guarantee to raise funds because the culture of these cultures would pay themselves automatically. "

Exporting these products would yield the green needed to slow the rapid depreciation of the Ghana cedi, support the country's balance of payments and also improve the reserves.

According to the ADI, the bonds should have a term of 15 years, which would be reimbursed to potential investors through the export of these products.

The large-scale cultivation of these five products would also serve as a substitute for imports and feed the factories established by the government under the 1D1F program.

According to the ADI arithmetic, growing coconut for export on more than 130,000 acres is expected to generate $ 250 million per year over a 10-year period and create 61,000 jobs, as well as avocado growing on 120,000 acres over a six year period. generate $ 700 million a year and create 24,000 jobs; the sweet potato on 35,000 acres could generate $ 200 million a year and create 14,000 jobs.

Citrus fruits can generate 180 million US dollars per year on an estimated 36,000 acres, cashew nuts could generate 40 million US dollars per year over the next six years, mangoes could generate 160 million US dollars per year year to create 3,100 jobs, pineapple, 150 million US $ per year. Each year, essential oils could generate $ 135 million a year and create more than 25,000 jobs.

The IDA called on the finance minister to work diligently to create such links for the agricultural sector, which is considered the backbone of the country's economy.