FAO Investment Centre

1 Ghana: Ghana: Irrigation market brief Irrigation market brief FAO Investment Centre COUNTRy HIGHLIGHTS. Please address questions and comments to: Investment Centre Division Food and Agriculture Organization of the United Nations (FAO). Viale delle Terme di Caracalla 00153 Rome, Italy IFC External & Corporate Relations 2121 Pennsylvania Ave., Washington, DC 20433. Report No. 19. I4158E/1 Tel: (202) 473-3800. Ghana: Irrigation market brief Report No. 19 - October 2014. FAO Investment Centre . Ghana: Irrigation market brief Diogo Machado Mendes Agricultural Economist Lisa Paglietti Economist, FAO Investment Centre David Jackson Commodity Market Specialist, LMC.

2 With contributions from: Ana Gonz lez Altozano Incatema Consulting country highlights prepared under the FAO/IFC Cooperation Programme Rome, 2014. A copublication of the Food and Agriculture Organization of the United Nations and the International Finance Corporation, a member of the World Bank Group. The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of FAO or IFC concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

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6 , Washington, DC 20433. Tel: (202) 473-3800. Fax: (202) 974-4384. Cover photo: FAO/Roberto Faidutti TABLE OF CONTENTS. Foreword v Acknowledgements vii Acronyms and abbreviations viii 1 Overview 1. Agriculture and the economy 1. Land, water, and crop production 2. Scope to grow irrigation 4. Major market players 4. Investment opportunities 5. 2 Market analysis 7. Untapped potential 7. Technology trends 8. Opportunities and challenges 9. Expanding the crop market 11. 3 Supply chain and services 14. Supply chain 14.

7 Manufacturers and distributors 16. Retail pricing 17. Assistance and maintenance services 18. Financial services 19. Advisory services 21. 4 Barriers and constraints 22. Power costs 22. Irrigation infrastructure 22. Land tenure and availability 23. Roads 24. Water availability and access 24. Labor availability 24. Trade duties and taxation regime 25. Access to finance 25. Farmer knowledge 25. Access to inputs and services 25. Post-harvest and marketing issues 26. 5 Effective business models 28. Out-grower programs 28.

8 6 Market opportunities 31. Natural resources 31. Crop markets 31. Fiscal incentives 31. Investment in irrigation 31. Farming communities 32. Annex 1 Sector overview major players 33. Annex 2 Crop market size assessment 38. Annex 3 Power infrastructure 44. Annex 4 Water management 45. Foreword In Africa, more than any other sector, agribusiness has the potential to reduce poverty and drive economic growth. Agriculture accounts for nearly half of the continent's gross domestic product (GDP) and employs 60 percent of the labor force.

9 The World Bank estimates that by 2030, agriculture could develop into a USD 1 trillion market in Sub-Saharan Africa, up from USD 313 million in 2010. For the International Finance Corporation (IFC), a member of the World Bank Group, agriculture is a top priority. With USD 4 billion in agribusiness investments worldwide, the IFC believes that the private sector plays a crucial role in addressing agriculture's pressing challenges. Recognizing the importance of agricultural productivity for food security and the role of public-private partnerships to unleash the sector's production potential, Food and Agriculture Organization of the United Nations (FAO) supports its member states to ensure that investments in the agricultural sector improve the inclusiveness and efficiency of agrifood systems, in line with the Organization's new strategic framework.

10 Achieving Africa's agricultural growth potential will require a significant increase in historically low levels of productivity. This is an area where irrigation can play a critical role. Modern, efficient irrigation systems can substantially increase crop yields, resulting in improved livelihoods, reduced risk associated with drought, efficient use of limited water resources, and greater food production. Currently, modern irrigation systems play a very limited role in Sub- Saharan Africa's agricultural sector.