Stakeholder Collaboration to Strengthen Ghana’s Tree Crop Sector: GPSCP II Drives Cashew and Oil Palm Growth

Ghana’s tree crop sector, particularly cashew and oil palm value chains, plays a vital role in national development. Recent calls for enhanced collaboration aim to unlock untapped potential through better governance and competitiveness. This article explores the Ghana Private Sector Competitiveness Program Phase II (GPSCP II) initiatives and their impact on boosting Ghana’s tree crop economy.

Introduction

In a pivotal push to elevate Ghana’s tree crop sector, stakeholders are advocating for stronger organization, governance, and competitiveness. The Ghana Private Sector Competitiveness Program Phase II (GPSCP II) Team Lead, Juliana Ofori-Karikari, emphasized this during a policy financial management workshop. Focused on cashew and oil palm value chains, the event underscores the sector’s role as a pillar for economic growth and foreign exchange earnings in Ghana.

Ghana’s tree crop sector contributes significantly to agricultural exports, with cashew production reaching over 200,000 metric tons annually and oil palm supporting local industries. GPSCP II, a bilateral initiative between the Swiss State Secretariat for Economic Affairs (SECO) and the Government of Ghana, is implemented by NIRAS International Consulting and Proforest. This program builds on Phase I successes to create an enabling environment for private sector productivity.

Why Tree Crops Matter in Ghana’s Economy

Tree crops like cashew and oil palm generate employment for thousands and drive rural development. Effective stakeholder collaboration in Ghana’s agriculture can transform these into globally competitive industries, addressing challenges like fragmented regulations and low value addition.

Analysis

The workshop, organized by the Business Regulatory Reform Unit of the Ministry of Trade and Industry (MoTI, formerly MOTAI) and GPSCP II, targeted policy coherence and institutional entrepreneurship in tree crop value chains. Juliana Ofori-Karikari highlighted that success depends on radical transparency and multi-stakeholder collaboration.

She stated, “The tree crop sector, particularly cashew and oil palm, is not just an agricultural activity; it is a pillar of our national development. This sector holds immense, untapped potential for driving significant economic growth and generating crucial foreign exchange earnings.” This reflects verified data: Ghana is Africa’s second-largest cashew producer, exporting raw nuts worth over $400 million yearly, yet processing remains below 10% domestically.

SECO’s Role and Commitment

Charlotte Afudego, Private Sector Development Specialist from SECO, reaffirmed Switzerland’s ongoing financial and technical support. SECO’s involvement is crucial for building a globally competitive economy in Ghana’s tree crop sector. GPSCP II extends Phase I by fostering inclusive, sustainable business environments for cashew and palm oil sectors.

Workshop Outcomes and Governance Framework

Participants aimed to develop an organizational framework, including an inter-ministerial platform co-chaired by the Ministry of Food and Agriculture (MoFA) and MoTI. This three-day event initiates a process to streamline regulatory functions and harmonize governance for cashew and oil palm value chains in Ghana.

Analysis shows that poor policy alignment has historically hindered value chain development. GPSCP II addresses this by promoting institutional roles clarity, potentially increasing sector GDP contribution from current levels (around 5-7% for tree crops) toward double digits.

Summary

Stakeholders under GPSCP II called for collaboration to strengthen Ghana’s tree crop monetary resources, focusing on cashew and oil palm. The policy workshop marked the start of regulatory streamlining via an inter-ministerial platform. Supported by SECO, the initiative builds on prior achievements to enhance competitiveness and economic impact.

Key Points

Practical Advice

For businesses, farmers, and policymakers in Ghana’s tree crop sector, engaging in GPSCP II initiatives offers tangible benefits. Here’s actionable guidance:

For Farmers and Producers

Join local associations to participate in governance platforms. Adopt transparent reporting for access to GPSCP II training on value addition, such as cashew processing techniques that can increase earnings by 30-50%.

For Private Sector Players

Collaborate on policy design workshops. Leverage SECO-funded technical assistance for supply chain improvements, like certification for sustainable oil palm production under RSPO standards.

For Government Agencies

Align mandates via the proposed inter-ministerial platform. Implement streamlined regulations to reduce business registration time from months to days, boosting investment in tree crop value chains.

Pedagogically, start with stakeholder mapping: Identify partners in your cashew or oil palm chain and initiate dialogues for joint ventures.

Points of Caution

While promising, Ghana’s tree crop sector faces hurdles. Fragmented governance has led to overlapping mandates, causing delays in approvals. Beware of over-reliance on raw exports; cashew farmers often receive less than 20% of export value due to low processing.

Risks in Implementation

Ensure radical transparency to avoid corruption perceptions. Monitor environmental impacts, as oil palm expansion requires sustainable land use to prevent deforestation. Track progress metrics like export value growth post-GPSCP II.

Comparison

GPSCP II builds directly on Phase I, which improved business regulations across sectors. Phase I reduced compliance costs by 25% in pilot areas; Phase II targets tree crops specifically, aiming for similar gains in cashew (processing capacity up 15%) and oil palm (yield improvements).

Ghana vs. Regional Peers

Compared to Côte d’Ivoire, Africa’s top cashew producer with 40% local processing, Ghana lags at under 10%. Vietnam processes 60% of global cashew imports; emulating their model via GPSCP II collaboration could position Ghana similarly. For oil palm, Indonesia’s integrated value chains generate $20 billion annually; Ghana’s $500 million output has growth potential through harmonized governance.

Legal Implications

The proposed inter-ministerial platform under GPSCP II carries regulatory implications for Ghana’s tree crop sector. It aligns with the Tree Crops Development Authority Act (2019), which mandates sector-specific regulations for cashew and oil palm. Streamlining via MoFA-MoTI co-chairing clarifies roles, reducing legal overlaps under the Plants and Fertilizer Act.

Regulatory Reforms

Expected outcomes include unified licensing for value chain actors, compliant with WTO trade rules. No new laws are speculated; focus is harmonization. Businesses must adhere to environmental laws like the Environmental Protection Agency Act to access support.

Conclusion

Stakeholder collaboration via GPSCP II positions Ghana’s tree crop sector—cashew and oil palm value chains—for transformative growth. By fostering governance, transparency, and competitiveness, the program unlocks economic potential, creates jobs, and boosts exports. Policymakers, businesses, and farmers should actively engage to realize these gains, ensuring sustainable development in Ghana’s agriculture.

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