24-Hour Economy mobilises GH¢1bn for poultry value-chain transformation

The 24-Hour Economy Secretariat and Accelerated Export Development Authority have secured financing commitments surpassing GH¢1 billion to bolster Ghana's poultry value chain. This funding, integral to augmenting local production, generating employment, and mitigating the nation's reliance on imported chicken, aims to bolster investments spanning feed production, day-old chick supply, equipment, processing, storage, and veterinary services.

Mr Arnold Parker, Funding Team Lead of the Secretariat, disclosed that these financial commitments were secured from prominent financial institutions and investors, such as ABSA, Fidelity, and Ecobank. The funding, slated to be deployed by private sector entities, would initially target GHS300 million in the first phase of the program, with additional financing expected post-implementation.

Parker emphasized that while the funds are currently available, establishing appropriate structures to deploy them effectively across the industry remains paramount.

The initiative transcends mere production enhancement; it seeks to fortify the entire poultry value-chain, from input suppliers and breeders to processors and off-takers. Furthermore, this program aligns with Ghana's Accelerated Export Development agenda, aiming to position locally produced poultry products for regional and international markets.

Parker highlighted the necessity for financing products that mirror the realities of poultry production cycles, as conventional lending structures often impose undue pressure on farmers. Banks and industry players are poised to collaborate in crafting customized financing solutions tailored to poultry operations. The financing drive arrives at a juncture when Ghana remains heavily dependent on imported poultry products.

In 2022, the country consumed approximately 324,047 metric tonnes of poultry but produced a mere 15,000 metric tonnes locally, constituting only 4.6 percent of national demand. Consequently, about 95 percent of poultry consumed in Ghana is imported, predominantly from Brazil, the United States, and Europe. The Ghana National Association of Poultry Farmers estimates an annual expenditure of nearly US$400 million on imported poultry products.

Parker envisions this new financing framework addressing these constraints by offering targeted support throughout the value-chain while bolstering enterprise management and technical capacity. The Secretariat plans to collaborate with research institutions, including the Council for Scientific and Industrial Research, to enhance productivity and spur innovation within the industry.