The Export, Trade, Agricultural And Industrial Development Fund
A
stakeholder’s conference has been held in Accra to assess the impact of the Export,
Trade, Agricultural and Industrial Development Fund on small holder farmers who
produce the majority of the food crops consumed by Ghanaians. The Export
Development and Investment Fund (EDIF) currently the Export Trade, Agricultural
and Industrial Development Fund (EDAIF) was established by the Export
Development and Investment Fund Act, 2000 (Act 582), and it became operational
in 2001 as an agency of the Ministry of Trade and Industry.
The
act was, however, amended in 2001 by the Export Development and Investment Fund
(Amendment) Act, 2011 (Act 823), to expand the scope of application of the fund
to include the development and promotion of agro-processing industry, hence the
change of the name of the fund to EDAIF.
EDAIF
operates by handing over money to designated financial instructions or banks
like Stanchart, Stanbic and the ADB. These banks then evaluate prospective
applicants to find out about their financial viability before they get the
funding.
The
primary source of funding for the EDAIF fund is money realized from the divestiture of state owned
enterprises.
What
do small holder farmers and farm based CSOs have to say about the fund?
Edward
Kareweh (Deputy General Secretary, GAWU)
“My
major concern with the Export Trade, Agricultural and Industrial Development
Fund is that it is an ideological orientation which retards progress. It simply
encourages the export of raw materials to feed the industries of the
metropolitan areas of the world whilst local industries scrunch up and suffer.
To
use state resources to meet the taste of foreign consumers and further the
development needs of external people is detrimental to the national interest
and runs contrary to the principles that underline nation building. We must
divert financial aid to support the activities of local farmers to meet
domestic demands.
Over
the past three decades Africa has proven to provide the most buoyant market for
trade in all manner of commodities but unfortunately, the continent has not
benefitted. Foreign multinational companies are trooping into Africa in droves
siphoning super profits out of the continent and yet our own people are not
empowered to also take advantage of this new era.
The
time has come for us to change our mindset of development by concentrating on
exploiting the labour and the other resources of Ghana towards economic
transformation.
The
working forces of this country have proven many times that when the leadership
of the country supports their initiatives, they can turn over the fortunes of
our country and bring about comfort and meaningful progress in the lives of our
people. Why must we have arable lands which can feed every Ghanaian three times
a day and yet some go to bed without food in their stomachs? We cannot simply
allow a situation where farming is only conducted so that some businessman want
to make money. Why are many workers spending a huge chunk of their wages and
salaries on imported food? This situation is completely not acceptable and we
have to take a new turn in how we run the affairs of this country ”
Frank
Bodze (Programme Manager in Governance at WILDAF)
“The
Export Trade, Agricultural and Industrial Development Fund is a good initiative
of government which will help our farmers to have funds to support agriculture
in Ghana. My view is that there is a need to streamline the programme so that
the funds can go to those who need them most and here I mean the peasant
farmers who provide the majority of the food we eat.
If
we have the resources to produce enough food we would not need to import food
into this country because excessive imports just destroys the industrial base
of the country. We must also put in place stringent measures to ensure that the
people who receive the funding pay back so that others can benefit.”
Victoria
Adongo (Director of Programmes, Peasant Farmers Association of Ghana)
“It
is very important for policy makers to recognize that it is the small holder
farmers that feed the twenty-five million people in Ghana and therefore every
policy that emanates from the state must first seek to support local
production.
We
do not condemn the EDAIF programme but our worry is that it is overly
concentrated on export of the produce of our hard working farmers. Small
farmers also want to expand and go commercial but we prefer that our effort and
our produce first benefit the local people and that is why we are demanding a
reform of the Export Trade, Agricultural and Industrial Development Fund to
support small farmers who feed the local population.
One
benefit of this reformation is that once the local poultry farmer is well
resourced and he is able to meet domestic demand, we will then be emboldened to
halt the import of frozen chicken which does not provide the nutrition needed
by the consumer.
The
other benefit is that maize and soya farmers who produce feed for the local
poultry industry will grow, they will employ more people and by that we can
contribute effectively to the development of the country. We will slip and fall
as farmers if we continue to rely on grants. We must move away from our current
over-reliance on grants and begin thinking as businessmen and women who can
manage our affairs”
Kweku
Boateng (Vegetable Farmer)
“My
aim in granting this interview is not to express disapproval of the Export
Trade, Agricultural and Industrial Development Fund but to call for a
re-engineering of the programme and get it to redirect its focus to solve the
problems that confront local food crop producers.
My
position on the EDAIF funding is that at least it makes money readily available
to qualified farmers. It takes away a major burden hanging on the necks of a
farmer who seeks to increase productivity for his wellbeing and that of the
society as a whole but there is an issue which has to be addressed.
Physical
cash alone is not what the farmer needs. We also need markets which does not
only buy cash crops but crops cultivated by the majority of our farmers. Under the Kwame Nkrumah government, efforts
were made and in fact there was a programme to buy the products of small
farmers by creating a ready market for them. There were specially set up
brigades that bought the produce of farmers and extended other support to them
so that our country can be food secure and that was how come our country became
self sufficient in food production within a relatively short period of time.
If
you proceed by dolling out physical cash to the farmer in grants and loans and
he does not have the market to sell what he has produced, how can he pay back?
South
Africa has the biggest vegetable market in the world because the government set
up councils to support farmers who produce all kinds of crops for local and the
foreign market. Vegetable farmers in Johannesburg, for instance, send their
produce to the Johannesburg Food Councils who buy them and sell on the local
market. Cocoyam, potato and cassava farmers have grades which determine the
prices of their produce and every farmer stands to benefit.
At
least in the case of Ghana, I humbly suggest that EDAIF uses our money in their
possession to build infrastructure and make markets available for farmers to
sell the product of their labour, make money and thereby remove the over
reliance on grants and credit facilities.”
Charles
Nyaaba (PFAG)
“The
initial plan of the EDAIF fund was to promote export but it has been reviewed
to cater for agriculture. What is
happening is that the fund is being managed by a secretariat and a 13 member
board of EDAIF but they do not give the money directly to the farmers. They put
it in designated financial institutions like ADB, Stanbic Bank, Stanchart Bank
and some others. Now these banks evaluate prospective applicants to find out if
that person is financial viable when he gets the loan.
They
want to know whether that person can pay back before they will advance the
money to the farmer and they will make follow ups to recover the money and give
it back to EDAIF. Now the challenge with small holder farmers is that you need
to write a proposal and then they will access it to find out if you meet the
criteria of the fund before you get it. And that is the area where small-holder
farmers are having a problem because majority of them are not able to write
good proposals to help them access the fund. It also then means that elite
farmers or big-time farmers who have the capacity and business plans and are
able to write good proposals, stand better chance of benefitting from the fund
than small holder farmers.
However
the grant facility which is also meant to help the farmers to come up is what
is disbursed by EDAIF itself as an organization. This that one is interest-free
so farmers do not need to write long and winding proposals. Nonetheless, EDAIF
will identify prospective farmer associations or groups and give them that
money to do their activities.
Our other concern is that the fund first
considers farmers who are engaged in the production of cash crops for export
and we demand that the time has come to support farmers who grow traditional
crops for the local market.
If you look very critically you will realize
that we are not self sufficient in producing all the food we eat in this
country, we still import some food so why do you put concentration in producing
food for export when you still have the potential to expand your domestic
industry?
Apart
from that even the crops they are asking us to produce for export are crops
that the farmers do not have specialties in those areas. For instance we know
exotic mangoes and pineapples are not what majority of farmers cultivate so
they are forced to go in there but they will not be able to do it well as they
do with cassava, maize, pepper, yam, groundnuts and several others which they
have been doing over the years but because they need the credit, they are
compelled to go in and at the end of the day they are not able to do it well
meanwhile we are not sufficient in the crops they are producing.
EDAIF
has stated that they are going do a complete assessment of the programme so we
hope that when they do those reviews they will try to consider the indigenous
or traditional agriculture where our people have the expertise to produce more
so that if we produce more to feed the local market then we can begin thinking
about storing some for the future and export what we cannot save.”
Ben
Kanati (Rice Farmer)
“My
problem with EDAIF programme was that I did not really understand the
components of the programme. As a rice farmer I have always held that we were
not part of the programme. It was by attending an evaluation workshop that I was
made to understand that already twenty-one million Ghana Cedis has been devoted
by the EDAIF programme towards rice production and that a commodity exchange
has been set up by the government to help farmers market their produce. But what
kinds of farmers benefitted from the funding?
How
does the small holder really access these programmes? Does the commodity
exchange market of government accept all produce or are there restrictions to
what you can send there? The fund must also be flexible so that all of us can
access it.
One
other observation I have made of the fund is that it tends to lend more support
to farmers who produce cash crops for foreign markets and that approach is
problematic because it deprives local farmers of the revenue to expand and grow
to meet the local market. On the other hand pressure builds for lower tariffs
for already highly subsidized imported goods which in turn affects government’s
tax revenue. When this happens, it constrains government space and we end up
going to the IMF and the World Bank with
with attendant negative social consequences.”
Godwin
Atokpleh ( Fmr. Vice President of PFAG)
“I
think there needs to be a lot of sensitization meeting for the EDAIF programme
especially for some of our farmers who can neither read nor write but are in
the forefront of food production.
It
is a major challenge for the fund if there are some farmers who cannot access
it because they do not know about it or even when they do, they have no idea
how to also benefit from it.
The
other concern I have is that EDAIF is now moving from a grant scheme to a loan
scheme without an adequate evaluation of whether farmers have the capacity to
stand on their own when the grants are withdrawn. We need to do a lot more
about these problems and to ensure that the programme does not become the sole
preserve of a few sophisticated farmers who only seek to produce for export and
contribute nothing to the balanced meals Ghanaian eat on their dinning tables.”
Duncan
Amoah (Rice Farmer)
“
Part of our problem with this fund is that we are unable to apply for it
because of the processes that are involved. In the first place, the money is
not given to the farmers directly by the EDAIF secretariat. The money is
deposited in some private and public banks to do an examination of the people
who apply to satisfy themselves that the people can pay back the money when it
is given to them.
Unfortuately,
some of us are unable to write the proposals so we cannot meet the criteria
that is set. That is where we have a
problem because some of us cannot read nor write the standard proposals that
will help us to meet the expectation of the bankers.
For these and other reasons we call on the
government to prevail on the fund managers to consider these concerns of local
farmers who were meant to be the primary beneficiaries of the fund.”
Hi Duke, this is your friend, Hira.
ReplyDeleteReading your blog with my afternoon fruit, i picked it freshly from my front yard while watering my garden.
It is really refreshing to see your work on sharing people's voice. I and my three Indonesian fellows,who were also with me coming to Antigonish some months ago, attended a three day seminar. We were there with farmers, local community volunteers. I wanted to do the same thing, recording their ideas on my blog. And it was as you said, really demanding work.
Yo've done really hard work. And that worth it. See,
your blog is awesome!
Great article.....the post is very informative and right on point thanks. Women in Agriculture
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