Omanghana
The 24-Hour Economy Secretariat and Accelerated Export Development Authority has secured more than GH¢1 billion in private-sector financing commitments to support the transformation of Ghana’s poultry industry.
The funding is intended to increase domestic production, create employment and reduce Ghana’s heavy dependence on imported chicken.
The facility was announced during stakeholder discussions for the National Transformation Poultry Program in Accra.
Major commercial banks involved in the financing initiative include Absa Bank Ghana, Fidelity Bank and Ecobank Ghana.
Arnold Parker, Funding Team Lead at the Secretariat, said the first phase of the program would target approximately GH¢300 million. Additional financing is expected to be mobilized after the initial implementation cycle.
Parker explained that the funds were available, but appropriate structures must be established to allow participating businesses to access and use the financing effectively.
The initiative will support investments throughout the poultry value chain, including feed production, breeding, day-old chick supply, farming equipment, processing, storage and veterinary services.
Banks and industry stakeholders are also expected to develop customized financing products that reflect poultry production cycles.
According to Parker, conventional loan arrangements can place excessive repayment pressure on farmers because their repayment schedules do not always correspond with the time required to raise and sell birds.
The program is therefore expected to provide financing arrangements suited to the operational and cash-flow requirements of poultry farmers, processors and other businesses within the industry.
Ghana remains heavily dependent on imported poultry products. The 2024 Budget Statement indicated that the country consumed about 324,047 metric tons of poultry in 2022 but produced only 15,000 metric tones locally.
Domestic production consequently accounted for just 4.6% of national consumption, with approximately 95% of poultry demand met through imports, mainly from Brazil, the United States and Europe.
The Ghana National Association of Poultry Farmers estimates that the country spends nearly $400 million annually on imported poultry products.
Strengthening domestic production is expected to help retain part of that expenditure within Ghana while creating jobs in farming, feed production, transportation, processing and retail.
The financing initiative complements a separate $270 million National Poultry Transformation Program for which the 24-Hour Economy Secretariat and four investment partners have signed Heads of Terms.
That agreement involves Agrium Capital, Petra Trust, Axis Pension Trust and Ghana EXIM Bank. It seeks to establish an integrated poultry platform covering feed production, breeding, hatcheries, broiler farming, processing, cold storage, logistics and market access.
The $270 million program is projected to create 12,000 direct jobs and initially produce 20,000 tones of processed broiler products annually, with output expected to increase to 50,000 tones.
The signed Heads of Terms is expected to be developed into a Shareholders’ Agreement for execution by the participating institutions.
The Secretariat will also collaborate with research organizations, including the Council for Scientific and Industrial Research, to improve productivity, technical capacity and innovation across Ghana’s poultry industry.
Source: Omanghana
