Prices for rice have been increasing in recent years, driven by increasing demand within Ghana as citizens become more health-conscious and value locally produced and less processed rice with higher nutritional value. At the same time, the quest for timely access to mechanization services by farmers is not being met by service providers; therefore, many farmers use traditional methods of land preparation, which leads to low productivity, low yields, and poor-quality produce.
Sustainable Agro Ltd., founded in 2012, is focused entirely on production, processing, and aggregation of rice in the Eastern and Volta Regions, expanding into the Upper East Region of Ghana. The company owns 50 acres of farmland, 5 of which have been developed for rice production, with another 90 acres being cultivated by a network of outgrowers. Sustainable Agro provides mechanization services, seed, inputs, and training to its outgrowers for production of its high-quality rice brands, DUQ and Salima, marketed in 5kg and 25kg bags.
The company has identified investment opportunities to capture the general increase in demand for high-quality, locally produced rice. Its proposed investment in mechanization services to assist smallholder outgrower farmers will increase rice production, help build a strong rice brand, and expand its distribution activities.
Sustainable Agro is seeking $400,000 in long-term financing to build a new packaging facility capable of mass-producing 25kg and 5kg bags of long-grain rice. It also seeks to purchase tractors and combine harvesters to increase production from a 50 MT capacity to 500 MT within 5 years.
Sustainable Agro may require a BAS provider to help raise financing for the project.
A USAID-FinGAP ERR has not been conducted yet. Key environmental considerations are management of agro chemicals for rice production, as well as managing wetlands.
Several initiatives create a conducive business environment for the investment, including:
- USAID-ADVANCE II, GCAP, SADA, and NRGP, among others, have begun to promote productivity of rice in Ghana.
- Rice Sector Support Project, Sustainable Development of Rain-Fed Lowland Rice Production Project, and NRDD, supported by MoFA and its development partners in the rice sector, have created enabling conditions for investments in the sector.
- Ghana School Feeding Programme (GSFP)
Abena Mamle Abedi, Managing Director, +233 24 326 0823; firstname.lastname@example.org