COCOA PRODUCTION AND PROCESSING

PROJECT DESCRIPTION

Cocoa plays an important role in the economy of Ghana. Cocoa employs approximately 800,000 farm families spread over six of the ten regions of Ghana. The crop generates about $2 billion in foreign exchange annually and is a major contributor to Government revenue and GDP.

Cocoa can be produced in all the forest areas of the country, particularly Eastern, Ashanti, Brong Ahafo, Volta, Central and Western Regions. Cocoa pods mature and ripe throughout the year. Cocoa is harvested by cutting the ripe pods from the trees, breaking them open, and extracting the beans. The beans are fermented for 6 days with three turnings before drying for another 7 days in the sun. The beans are then bagged, graded, and sealed for local processors and export.

PROJECT SCOPE

Investment opportunities exist in the production and processing of products like chocolate, pebbles, and cocoa powder. The Cocoa Research Institute of Ghana (CRIG) has also come out with other products that can be produced from cocoa beans and cocoa pods. These products include cocoa brandy, cocoa wine, cocoa jam, cocoa gin, cocoa butter soap, cocoa butter moisturizing soap, vinegar, and cocoa biscuits. Ghana exports about 800,000 tonnes of cocoa annually.

The major national goal is to achieve 50% processed cocoa as a proportion of the exported.

INITIAL CAPITAL OUTLAY

Estimated capital outlay for the establishment of modern cocoa farms and processing plants ranges from US$ 0.5 -3 million depending on the choice of the scale of investment of the investor.

PROCESSING FACILITIES FOR PROCESSING POULTRY FOR THE LOCAL AND EXPORT MARKETS FARMS

PROJECT DESCRIPTION

The poultry industry in Ghana is characterized largely by imports of poultry meat. In 2019, imports of poultry products amounted to US$374 million that is, 300,000 metric tonnes of chicken annually. Local processing of chicken is minimal, all the chicken parts are imported into the country in high volumes. There is also the demand for chicken and its’ parts in the West-African sub-region.

PROJECT SCOPE

A strategic approach includes the processing of poultry products for domestic and export markets. Also, importers and wholesalers of chicken and chicken parts could be brought on board to utilize their distribution networks.

INITIAL CAPITAL OUTLAY

The capital outlay estimated for this investment ranges from US$ 0.5- 3 million.

PROJECT LOCATION

The production and processing facilities for poultry and its related products can be in Eastern, Volta, Western, Brong Ahafo, Central, Ashanti, and Greater Accra Regions.

ESTABLISHMENT OF HATCHERIES AND POULTRY FARMS

PROJECT DESCRIPTION

Eggs and poultry meat are important components of the Ghanaian diet as a source of animal protein. The poultry industry also provides employment for a significant number of people. Even though a lot of poultry farms exist in the country, the
broiler industry is in decline.

Small, medium, and large-scale producers constitute about 60%, 30%, and 10% respectively of poultry farmers in the country. Whilst the large-scale producers employ higher technologies in the form of hatcheries,
veterinary services, and better marketing arrangements, the small-scale farmers employ little or no technologies.

PROJECT SCOPE

Investment opportunities, therefore, exist in the establishment of modern hatcheries and poultry farms in order to increase the scale of production of poultry product and reduce the import of chicken parts from Europe, Brazil, and the United States.

Poultry farms can be found in almost every part of the country with meat production estimated at 290,563 metric tonnes in 2018. Small, medium, and large-scale producers constitute about 60%, 30%, and 10% respectively. Rural poultry constitutes about 80% of Ghana’s poultry population.

INITIAL CAPITAL OUTLAY

The estimated capital outlay for the establishment of hatcheries and poultry farms range from US$ 0.5-1.5 million depending on the scale and sophistication of the facility.

PROJECT SCOPE

Strategic options include the construction of new irrigation systems for maize production as well as the cultivation of maize on existing irrigation schemes for human and animal consumption.

INITIAL CAPITAL OUTLAY REQUIRED

The capital outlay is estimated to range from US$ 0.25- 2 million depending on the production scale.

PROJECT LOCATION

Proposed projects can be located in all the ecological zones of the country.

PRODUCTION AND PROCESSING OF MAIZE FOR DOMESTIC MARKET

PROJECT DESCRIPTION

Maize is one of the most popular food crops on the domestic market and it is grown in all the ecological zones of the country. It is the basis of several local food preparations and the main feedstuff for poultry and other livestock. However, yields under rain-fed cultivation are low. Irrigating maize will result in higher yield, increased productivity, and lower prices of maize. Therefore,
investment opportunity exists in the large-scale production of maize for the domestic markets.

PROJECT SCOPE

Strategic options include the construction of new irrigation systems for maize production as well as the cultivation of maize on existing irrigation schemes for human and animal consumption.

INITIAL CAPITAL OUTLAY REQUIRED

The capital outlay is estimated to range from US$ 0.25- 2 million depending on the production scale.

PROJECT LOCATION

Proposed projects can be located in all the ecological zones of the country.

PRODUCTION AND PROCESSING OF SOYA BEAN ON COMMERCIAL SCALE UNDER IRRIGATION

PROJECT DESCRIPTION

Demand for soybean and its derivatives (soyabean oil and soybean cake) is very high. Soybean is imported for the extraction of oil for local and export markets.

The resulting soybean cake is processed into poultry and fish feeds. The quantity of soybean grown locally is very low (1mt/ha). Improved technology of production is needed. Mechanized production of soybean on a commercial scale under irrigation, will improve yields to about 6 mt/ha thereby increasing yield, productivity, and profitability.

PROJECT SCOPE

Strategic options include the large-scale cultivation and processing of soya into soya milk, soya oil, and poultry and fish feeds.

INITIAL CAPITAL OUTLAY

The capital outlay is estimated to range from US$ 1- 3 million depending on the production scale.

PROJECT LOCATION

Proposed projects can be located in the Brong Ahafo or the Northern part of Ghana where soybean thrives.

COMMERCIAL PACKHOUSES FOR HANDLING OF FRUITS AND VEGETABLES

PROJECT DESCRIPTION

Pack houses are crucial in the horticulture export value chain. Fruits and vegetables harvested need to be pre-cooled in pack houses to remove the field heat, cleaned, and packaged to reduce perishability.

This would minimize post-harvest losses which are in the region of 30% to 60 % depending on the produce.

PROJECT SCOPE

Privately operated commercial packhouses are needed in farming areas as well as in marketing centers across the country. The scope for a packhouse should include both fruits and vegetables.

INITIAL CAPITAL OUTLAY REQUIRED

The estimated capital outlay for the packhouse range from US$ 1-5 million depending on the scale and sophistication of the facility.

INITIAL CAPITAL OUTLAY REQUIRED

The packed house can be located in the Accra Plains, SADA Zone, the Aburi-Nsawam axis and the Awutu areas which are noted for fruits and vegetable production.

PRODUCTION OF DRIED PINEAPPLES FOR EXPORTS

PROJECT DESCRIPTION

Drying facilities are required to produce dried pineapples for export to the European Union and the United States of America.

PROJECT SCOPE

Strategic options include setting up new factories or upgrading the operations of existing small-scale processors through the introduction of forced drying techniques and packaging equipment for the export market.

INITIAL CAPITAL OUTLAY REQUIRED

The initial capital requirement for a factory to produce dried fruits for export is estimated at US$ 0.5-2 million.

PROJECT LOCATION

The drying facilities or equipment can be installed in the Accra Plains, Aburi-Nsawam axis, Awutu areas, and on the 50,000 hectares of available land in the Bui area.

WA AGRO & FOOD PROCESSING PARK

Wa Industrial Park is proposed in anticipation of the economic growth in the North-West the province is driven by the agriculture and mining sectors. The growth in agriculture and mining sectors will need supporting industries, such as services industries as well as agro-processing industries.

The setting up of the industrial park is to ensure environmental control for the industries and to forge synergies among the industries. The land area for the industrial park is estimated to be around 100-150 ha

PROJECT COMPONENTS

Development of 150 ha Industrial Park with the following components:

  • Agro-processing industrial cluster
  • Services industrial cluster
  • Warehousing facilities
  • Supporting facilities and infrastructure.

PROJECT MANAGEMENT AND FINANCING

Considering its strategic role in the development of NSEZ, it is proposed to set up a Special Authority to develop and manage the industrial park in Wa. The authority is responsible to strategize, planning/designing, market, develop and manage the complex including the infrastructure development within the site.

Although there are some commercial components (and revenue) in this project, it is still largely a government project to attract investment in manufacturing & logistics to boost the economic development of the NSEZ.

MILESTONE (IMPLEMENTATION SCHEDULE)

  • 2017/2018: Planning and land Consolidation.
  • 2017/2018: Feasibility Study & Project Phasing
  • 2018: Setting up of the Authority for the development.
  • 2019: Infrastructure Engineering design and building

design for the start-up phase.

  • 2019: Marketing.
  • 2020: Expected construction of the start-up phase

GOVERNMENT OBLIGATION

1. Identify and secure land for the industries, which is assessable from the main road. 2. Build infrastructure for the industrial park be around 100-150 ha

ESTIMATED COST AND REVENUE

The construction cost for the infrastructure should be kept to a minimum, estimated at 40 USD/m2. For 150 ha, the infrastructure cost is estimated at 60 million USD. A start-up phase of 30 ha at 12 million USD is recommended.

GHANA COTTON AND TEXTILES PROJECT

SADA signed two MoUs with (1) the China National Textiles and Apparel Council (CNTAC), (2) CAMC Engineering and Elmwood Finance Ltd to produce  Cotton and
Textiles in the Northern Savannah Ecological Zone (NSEZ). The MOU with CNTAC was witnessed by the Ministry of Trade and Industry (MOTI).

The purpose is to produce cotton in commercial quantities directly by CAMC and throughout-grower arrangements with local farmers; process the cotton across the entire value chain and establish a Textiles Training Institute. This project will revitalize the cotton industry in Ghana, put the idle cotton ginneries to work, and inject a cash crop into northern Ghana which desperately needs a sustained source of income.

The proposed Ghana Cotton and Textile Project will bring high-tech equipment, high manufacturing standards, expertise, and training required for the local workforce in order to transform Ghana into a global textile hub in the sub-region. The project proposes an initial fund of $1bn dollars. An initial amount of $300 million has been pledged in the MOU by CNTAC.

The benefits are immense: export revenues from the cotton value chain could exceed $600mn in 4 yrs; 50,000 ha of cotton under cultivation rising to 500,000 in 8-10 years; a Training Institute to develop skills across the value chain; incomes for thousands of small farmers and their families; over 30,000 jobs for young people (both manual and professional) within 5 years; reduction of distressed migration of labor to the South in such for work, among others.

PROJECT BACKGROUND:

The NSEZ is the most suitable location for cotton cultivation. Land suitability studies conducted by SADA suggest that over 4 million ha are suitable for cotton cultivation in the area, most of it is unutilized. In the not-too-distant past, the cultivation of cotton was a major source of livelihood for thousands of small farmers across northern Ghana.

The relative success led to significant public investments in the construction ofginneries. Unfortunately, the cotton sector collapsed in the 80s, and efforts to revive it have so far been unsuccessful. Although the ginneries have been privatized, they are mostly idle. The collapse of the cotton sector may also have affected raw material supplies to the textile sector in the South. To revive the sector, a Cotton Development Authority (CDA) has been established but is poorly resourced and with limited powers. Support for the cotton research sector is also poor.

The CDA is currently dependent on SADA’s support for its operations.
The proposed Cotton and Textiles Project (CTP) would provide a major injection for the revival of the cotton and textiles sector in Ghana. The proposition is different from past efforts in that it involves the entire value chain: an anchor farmer investing directly to produce a certain minimum quantity to feed ginneries and factories, whilst supporting small farmers to grow cotton. By not depending on the exports of raw cotton, prices to farmers, and demand for the crop would be more stable. The focus on the entire value chain also enhances opportunities for backward and forward linkages in the economy and therefore potential to stimulate businesses more widely

PROJECT OBJECTIVES

  • Create 30,000 jobs in cotton production and processing by 2019;
  • To develop the cotton value chain in the NSEZ with the setting up of a Cotton and

Textiles Training Institute;

  • Increase Ghana’s export value of cotton products to over $150million/year from 2019

PROJECT OUTCOMES

To create employment in Ghana and facilitate knowledge and technology transfer to Ghanaians in the textiles value chain. Huge investment in the Country’s textile and related industries, creation of value addition, the attraction of FDI, and reduction of dependency on traditional export commodities.

ESTIMATED COST

$1billion; with $300million already committed by CNTAC

REMARKS

As per the agreement, SADA (government of Ghana) obligation is: to lease 50,000 ha of land for cotton farming and additional land for the siting of the factories and training institute; Finance and facilitate the feasibility Studies and contribute to the establishment of a Ghana Cotton and Textiles Fund jointly with the Chinese partners to finance the project.

FRESH PINEAPPLES INTO JUICE CONCENTRATE FOR EXPORT AND LOCAL MARKETS

PROJECT DESCRIPTION
As a result of the low production of fresh pineapples, existing juice companies import pineapple juice concentrate for further processing for the local market and the West
African sub-region.

Investment opportunities, therefore, exist for the processing of fresh pineapples into juice concentrate for export and local markets.

Establishment of processing facilities within 50,000 hectares of available lands in the Bui area has also been identified and confirmed to be very viable. Pineapple juice processing plants can also be sited in the Accra Plains, Aburi-Nsawam axis and the Awutu areas where there are existing commercial pineapple farms.

Additionally, the pineapple bran obtained from processing can be used for the feeding of livestock.

PROJECT SCOPE

Setting up new processing factories or upgrading operations of existing small-scale factories to process the fresh pineapples into juice concentrates. The fresh pineapple export sub-sector is the most developed of all the nontraditional horticultural export crops in Ghana. It accounts for 20% of revenues from this sub-sector.

The smooth cayenne is the main export variety but there is the gradual introduction of MD2. The sugar loaf pineapple does not feature much in export due to poor post-harvest outcomes on quality. Ghana is among the countries that exported the highest dollar value worth of pineapples during 2019 worth $31.6 million.

INITIAL CAPITAL OUTLAY REQUIRED

The capital outlay required is US$ 1 -5 million

PROJECT LOCATION

The pineapple juice processing facilities can be sited in the Accra Plains, AburiNsawam axis, Awutu areas and on the 50,000 hectares of available lands in the Bui
area