Speech by the DP Co-Chair on the occasion of the launching of the Medium Term Agriculture Sector Investment Plan METASIP (21st July 2011)
Friends of the Media,
Ladies and Gentlemen,
I am here to make a statement on behalf of Development Partners on our commitments to the CAADP Compact that we signed onto on 28th October 2009.
Hon Chairman, DPs acknowledged in the said Compact, that achieving the Millennium development Goals, Ghana Agriculture vision as expressed in Ghana’s Shared Growth and Development Agenda (GSGDA) and FASDEP II require increases in size, quality and effectiveness of development assistance.
DPs will in consultation with Government of Ghana, continue to provide indications of future aid to Ghana through on a multiyear basis through
1. Multi Donor Budget Support
2. Sector Budget Support
3. Project specific funding,
4. Special/Ad-hoc budget mechanisms,
To improve predictability of financial inflows and allow better planning, budgeting and implementation.
Hon. Chairman, I can assure you that DPs remain committed to this process and have collectively taken steps to harmonize and align our assistance to the sector.
These steps include the use of country systems, GoG procurement regulations, common reporting requirements, agreed fiduciary management measures, platform for open dialogue based on clear communication mutual trust and respect to drive the implementation of programmes and priorities identified in the sector investment Plan METASIP. DPs will require clear compliance timelines to help us put our house in order.
To the DPs it is clear that this good and ambitious programme cannot be funded alone through public and DP investments. The major investment for the sustainable success of METASIP has to come from the private sector.
It is gratifying to note, Mr. Chairman, that METASIP has been endorsed as a strong overaching document for the entire agricultural sector, not just MoFA. In this regard, it requires the commitment and participation of all stakeholders.
The launching today of an investment Fund (Outgrower and Value Chain Fund (OVCF)), the up-coming commercial agriculture, Feed the Future Programme, Purchase for Progress, the Rice Sector Support Programme and Warehouse Receipts are classic examples of several new GoG initiatives supported by DPs towards the FASDEP II Agenda.
Mr. Chairman, these programmes would require medium to long term lending instruments. It is strongly suggested that Bank of Ghana considers a second window for rolling out economic policy rate (commonly referred to as prime rate) to accommodate medium to long term products. The current thresholds and interest rates make medium to long term borrowing unattractive to end-users.
We are equally concerned about the slow disbursement of donor funds. We would take steps to reduce transaction time for issuance of statement of non-objection. The need for more funds can be tempting. Perhaps we need to pay attention to what we have.
Hon. Chairman, MoFA has a draft communication strategy to guide the implementation of METASIP in a decentralized manner. The strategy seeks to re-enforce decentralized budget planning and reviews sessions with local actors at the district and regional levels.
We strongly encourage MoFA to implement this strategy and also pay attention coordination mechanisms that link outcomes and impacts measurements to the national M&E framework.
Hon. Chairman, we are encouraged that we have the right leadership to steer the process within the sector. We remain committed and supportive to create a difference.
Thank you and stay blessed.