Partners:

Ministry of Food and Agriculture (MOFA), Policy Planning, Monitoring and Evaluation Directorate
Ghana Food Distribution Corporation (GFDC)
Societe Generale de Surveillance (SGS, Ghana Ltd)
Agricultural Development Bank (ADB)
Barclays Bank (Ghana) Ltd.
Grain Marketing Association of Ghana (GMAG)

Problem:

The review of agricultural marketing and credit systems in SSA concluded that though liberalisation had created more space for the private sector, inefficiencies persist, which continue to hamper trade and productivity enhancement. For instance, seasonal prices, especially for staple grains, are highly variable; considerable cheating on weights and quality occur to the detriment of producers; and access to credit is very limited. Factors contributing to this situation include lack of efficient storage facilities, poor rural transport infrastructure, poorly developed systems of standard grades and measures, unreliable market information systems and lack of collateral for bank loans. This experience has persisted in most countries in SSA as well as in some South Asian countries.

Achievements:

Service: The seminal output was that a regulated warehouse receipt system (WRS) can simultaneously help make agricultural marketing more efficient and improve access to finance. The system can help to moderate seasonal price variability to the benefit of producers and consumers; and create the basic framework for establishing vibrant commodity exchanges, which many SSA countries have been struggling to promote. The WRS model advocated by NRI was intended to be open to all players – with specific mechanisms developed to assure access by smallholders to the services provided. Commercial service delivery is also stressed to ensure long-term sustainability.

Policy: The prerequisites for developing WRS were identified, key among which is a supportive regulatory and policy environment. It was observed that the most significant challenges in establishing WRS are disabling elements in the policy environment, particularly ad hoc interventions occasioned by short-term reactions to symptoms of market inefficiency.

Methodology: Based on the research findings, NRI advocated a process approach in promoting receipt systems. The approach places emphasis on the specific context in countries and commodity sectors, rather than the imposition of generic blueprints, in the design and implementation of WRS project. This approach is inherently flexible, allowing for changes to be accommodated as implementation evolves. It is also premised on strong local leadership in the development of sustainable receipt systems, with especially by the private sector playing a lead role. External technical assistance has to be focused on providing technical guidance to local stakeholders in making strategic design and implementation decisions.