Investing in commercial rice production guarantees potential investors a ready local and regional market for the produce. Ghana is currently importing most of the rice consumed despite the fact that local scientists have over the years developed quality rice varieties for growing. Vast fertile agricultural lands, favourable climatic conditions and an attractive incentives regime; as well as the existence of a fairly good infrastructure make the proposed project bankable.
Promoter: Agro-Business and Investment.
Proposed project: Commercial rice growing venture.
Description: The promoter is seeking for an investor to participate in a greenfield commercial rice production project with potential to diversify into maize growing, as well as livestock and poultry rearing. A detailed business plan mapping out the three-phase implementation of the project is available to interested
investors.
Cost of investment: US$325,000. The initial investment capital shall be required mainly for machinery (implements, equipment and milling plant), and crop inputs.
Available land: Over 10,000 ha for establishing rice fields and another 20,000 ha also suitable for agricultural activities have been secured.
Project site: Volta region and Northern region. The Volta region farming land lies about 50km from Accra and very close to the district capital town, Adidome, while the farm in the north is about 30kms away from Tamale town, the regional capital.
Site advantage: The farming lands are situated in areas with tarred roads, electricity, piped water, abandoned rice mills -possibility of buying them from the government exists - lakes, rivers and dams for irrigation.
Sector profile:
Ghana’s agricultural production has grown steadily due to favourable climatic conditions and improved farming practices. Yet demand continues to outweigh supply of many commodities. Consequently, imports make up the balance of domestic consumption for crops like rice and maize. Rice imports currently stand at $450 million with the average consumer spending $200-$300 annually on imported rice. Data from the ministry of agriculture indicates that rice consumption in the country has been on the increase since the early 1990s. Ghana’s government is supporting and promoting investment in rice production to reduce the cost of imports. With the international price of rice escalating, experts say the time to invest in increasing the local production is now.
Incentives
• Exemption from customs import duties on
plant and machinery, equipment and accessories imported exclusively and especially for establishing enterprises.
• Depreciation or capital allowance of 50% in the year of investment and 25% in subsequent years for plant and machinery respectively.
• Corporate tax rebates of 40% -75%
• Investment allowance of 7.5% per annum
• Full repatriation of earnings in the currency of investment.
• Government supported fertilizer subsidies
Ghana’s competitive advantage
• Well-developed transportation infrastructure, electricity and water supplies, internal and external communications; and sea and airport facilities.
• Strategic location within the west African region and preferential access to ECOWAS market with a total populace of 250 million.
• Free market economy and plenty of affordable labour.
• No restrictions on the issuing of work and residence permits to foreign investors.
For further information on this project contact Agro-Business and Investment.
Key contact: B. Amissah-Opong
Agronomist partner
Cell: +27 78 164 6905
Email: ikes_12@yahoo.com
