The Government of Ghana through the Ministry of Food and Agriculture, the World Bank, COCOBOD, and relevant stakeholders have launched the Tree Crop Diversification Project (TCDP) to reduce the economy’s dependence on cocoa production as its major source of revenue for the country.
This initiative is designed to reshape Ghana’s agricultural sector and foster sustainable economic growth through the diversification of tree crops for resilience in agriculture sector.
The project focuses on strategic tree crops such as cashew, coconut and rubber, which will improve productivity and incomes for over 50,000 farmers and their households.
Director of External resource mobilization at the Ministry of Finance, Louis Kwame Amo, representing the sector Minister indicated that the Ghana Tree Crop Diversification Project will cushion the country’s economy against climate change and other effects as it shifts the country’s reliance on one cash crop.
“For years, Ghana has been a key player in the global agricultural landscape, particularly through our production of cash crops like cocoa, which has long been a pillar of our economy. However, we are all aware that over-reliance on a single commodity exposes us to external shocks—whether from price fluctuations or the impacts of climate change.
Therefore, diversifying our tree crop sector is not just an economic imperative, but a strategic necessity to build a more resilient, inclusive economy.
He said by strengthening the production, processing, and export of these crops, we are not only broadening the economic base of our agricultural sector but also creating sustainable livelihoods for millions of farmers, particularly in rural areas.
“This project will help strengthen our economy, enhance its resilience to climate change and global market fluctuations. Diversification reduces the risks associated with over-reliance on a single commodity, creates new income opportunities for farmers, and opens new markets both domestically and internationally.
“Ultimately, we aspire to move from being primarily a producer of raw materials to a more competitive, value-added agricultural exporter”, he added.
The US$227.5 million project will provide market access, and bolster the competitiveness of the private sector.
Dr. Bryan Acheampong, Minister for Food and Agriculture, said Ghana’s tree crop sector is vital to agriculture and the economy, generating income for over 1.6 million farming households, including commercial producers beyond cocoa.
He said this sector offered significant opportunities for economic diversification, job creation, poverty reduction, food security, foreign exchange earnings, and a substantial contribution to Gross Domestic Product (GDP).
The Minister said despite having ample arable land for cocoa production, Ghana faced significant threats from deforestation, climate change, and other environmental issues, leading to a marked decline in suitable land.
“If current trends continue, many cocoa-farming households will suffer, along with a drop in the country’s foreign exchange revenues,” he added.
Dr. Acheampong said approximately 40% of these beneficiaries would be women, located across 11 districts in six regions, namely Western North, Eastern, Savana, Bono, Bono East, and Eastern.
He said additionally, the project would support 5-10 input suppliers and 10 nurseries, while providing matching grants, technical assistance, and improved market access to approximately 185 small and medium-sized enterprises in cocoa, cashew, and coconut processing.
The project is expected to create around 20,000 jobs at an investment of $4,200 per job, with a significant focus on employing 60% women and engaging youth.
The Country Director of World Bank Robert Taliercio O’Brien expressed hope that the project “delivers long-term, shared benefits for all Ghanaians. “Together, we can build a resilient, competitive, and sustainable tree crop industry that supports national development, job creation, and poverty reduction.”
Chief Executive Officer of Ghana Cocoa Board Joseph Boahen Aidoo, on his part, highlighted the importance of the project complimenting efforts of the regulator in promoting a robust cocoa sector.
COCOBOD’s US$27.5 million investment in the project underscored its commitments to interventions in these areas, it contributes to the Government’s overall strategy for cocoa sector modernization.
The CEO of COCOBOD said: “we are also committed to ensuring the effective and efficient implementation of the project. We expect that the project will leave a lasting impact on the target beneficiaries and communities and pave the way for more collaborations.”
The project will target women, with 40% of the beneficiaries being female, located across 11 districts in six regions: Western North, Eastern, Savanna, Bono, Bono East, and Eastern. It will also support 5-10 input suppliers and 10 nurseries while providing matching grants, technical assistance, and improved market access to approximately 185 small and medium-sized enterprises involved in cocoa, cashew, and coconut processing.
The project is expected to create around 20,000 jobs, with an investment of $4,200 per job. A significant focus will be placed on employing 60% women and engaging youth in the process.
Robert Taliercio O’Brien, the World Bank Country Director, expressed optimism about the project, stating it aims to deliver long-term shared benefits for all Ghanaians.
