Ghana’s rice industry is set to receive a major boost as the African Development Bank (AfDB) and the Economic Community of West African States (ECOWAS) Commission have signed a Protocol of Agreement for an $11.78 million grant to strengthen regional rice production, enhance food security, and reduce dependence on costly imports.
The grant, approved by the AfDB Board of Directors on November 20, 2024, will finance the Regional Resilient Rice Value Chains Development Program in West Africa (REWARD-ECOWAS) which is a five-year initiative aimed at improving agricultural productivity across ECOWAS member states, including Ghana.
The ECOWAS Commission has also committed an additional $1.18 million in co-financing for the project.
Speaking at the signing ceremony, which took place at the ECOWAS Commission headquarters in Abuja, Nigeria, ECOWAS Commission President, Dr. Alieu Omar Touray, and AfDB Nigeria Director General, Dr. Abdul Kamara, emphasized the significance of the project in ensuring food security in West Africa.
For Ghana, where rice consumption continues to rise while production struggles to meet demand, this initiative presents an opportunity to reduce rice import dependency, increase local production, and create jobs along the rice value chain. The country currently imports large volumes of rice to supplement domestic production, putting pressure on foreign reserves and exposing local markets to global price shocks.
According to AfDB’s Dr. Kamara, the project will help West Africa reduce its reliance on rice imports, which cost the region approximately $3.5 billion annually.
“In 2021, West Africa produced around 14 million metric tons of milled rice, while demand exceeded 22 million metric tons. This has resulted in significant imports, weakening local economies and food systems,” he noted. “The REWARD-ECOWAS project will support Ghana and other member states to scale up rice production, improve regulatory frameworks, and enhance digital monitoring systems to make the sector more competitive.”
Ghana’s rice farmers are expected to benefit from improved access to agricultural inputs, policy reforms, and modernized production techniques under the initiative. The ECOWAS Rice Observatory, through the Economic Affairs and Agriculture Department, will oversee implementation efforts.
Dr. Touray stressed the urgency of the project, stating that food security is directly linked to economic stability, peace, and security.
“For us, an important project such as REWARD must be implemented swiftly. It aligns with ECOWAS’ 4X4 Strategy, which prioritizes regional peace, economic integration, good governance, and sustainable development,” he said.
The REWARD-ECOWAS project also supports the broader ECOWAS Regional Rice Roadmap (2025-2035) and aligns with the AfDB’s Regional Strategy for West Africa 2020-2025, which aims to increase agricultural productivity and build resilient food systems.
