Cassava processing and marketing Regional Cassava Processing and Marketing Initiative FIRST REGIONAL MEETING OF IFAD ROOTS & TUBERS PROJECTS November 2007 Hotel Somatel - Douala, Cameroon

Cassava processing and marketing ROOT AND TUBER IMPROVEMENT AND MARKETING PROGRAMME (RTIMP) GHANA MARKETING OF CASSAVA AND ITS DERIVATIVES IN GHANA PRESENTED BY : DR. OPPONG MENSAH-ABORAMPAH NOVEMBER 2007

Cassava processing and marketing OUTLINE OF PRESENTATION 1. MAIN ACTIVITIES IMPLEMENTED 2. WAYS TO IMPLEMENT THEM 3. MAIN GOOD PRACTICES AND LESSONS LEARNT 4MAIN SHORTCOMINGS (DIFFICULTIES) ENCOUNTERED 5 MAIN CHALLENGES AHEAD AND PLANNED ACTIONS TO TACKLE THEM

Cassava processing and marketing THE MARKETING & SME DEVELOPMENT COMPONENT OBJECTIVES TO ASSIST R&T PROCESSORS ON HOW TO DEAL MORE EFFECTIVELY WITH MARKET FORCES ; TO TRAIN BENEFICIARIES IN THE ADOPTION OF FORMAL BUSINESS PRACTICES; 3.TO SUPPORT BENEFICIARIES LEARN HOW TO ESTABLISH MUTUALLY BENEFICIAL LINKAGES WITH OTHER ACTORS IN THE R&T COMMODITY CHAIN.

Cassava processing and marketing THE MARKETING & SME DEVELOPMENT COMPONENT MAIN AREAS OF WORK 1. CONDUCT OF BUSINESS MANAGEMENT TRAINING; 2.CONDUCT OF MARKET IDENTIFICATION SURVEYS; 3.ESTABLISHMENT OF MARKET AND TRADE INFORMATION SYSTEMS

Cassava processing and marketing THE MICRO-ENTERPRISE FUND OBJECTIVES 1.TO INTRODUCE INNOVATIVE FINANCIAL SERVICES (A MATCHING-GRANT FACILITY) SPECIALLY DESIGNED TO SUPPORT UPGRADING OF PROCESSING EQUIPMENT; 2.TO SUPPORT A DRIVE OF MARKET-BASED R&T COMMODITY CHAIN CREATION THROUGH PROCESSING.

Cassava processing and marketing THE MICRO-ENTERPRISE FUND MAIN AREAS OF WORK 1.TRAINING IN, AND SUPPORT TO, BUSINESS PLANS PREPARATION AND HAND-HOLDING OF CLIENTS TO ACCESS FUNDS; 2JOINT-MONITORING EFFORT FOR PROFIT-ORIENTED BUSINESS PLAN IMPLEMENTATION.

Cassava processing and marketing A.Under RTIP:  Training Needs Assessment (TNA) was conducted to identify training gaps of beneficiaries. A study into the provision of a package of business support services and innovative financial services was conducted;  Conducted training in the utilization of High Quality Cassava Flour (HQCF); this created demand base for HQCF in the country. Information was collated on the potential market for cassava-based products in Ghana;  Conducted capacity building trainings on marketing of cassava products and information collated on potential markets for cassava-based products in Ghana. DESCRIPTION OF MAIN ACTIVITIES IMPLEMENTED

Cassava processing and marketing DESCRIPTION OF MAIN ACTIVITIES IMPLEMENTED B.Under RTIMP: 1.Initiated business development/marketing orientation and sensitization sessions aimed at changing mind-set of beneficiaries through programme launch presentations and other start-up activities. 2. Started sensitization activities to stimulate the rural economy and awakening of the entrepreneurial poors to build on the gains from RTIP. 3.Sourced TSPs for the conduct of Business Development and Marketing Training, in line with IFAD’s Private Sector policy.

Cassava processing and marketing HIGHLIGHTS ON HOW ACTIVITIES WERE IMPLEMENTED 1.Creating a market-based commodity chain system driven from processing point of view. 2.Participation in a nation-wide corporate programme launch for target districts. This offered opportunity for initial sensitization on innovative features of RTIMP. 3.Innovative financial support to small-scale processing units – a Matching Grant Credit /Lease System – The Micro-Enterprise Fund (MEF). 4.Involvement of a ARB-Apex Bank with downstream Rural and Community Banks (closer to beneficiaries) in the management of the funds. 5.Risk minimization for participating financial institutions (PFIs) by way of RTIMP supporting preparation of Business Plans and hand-holding beneficiaries to access funds. 6.Joint post-financing monitoring efforts to ensure highest loan repayment rate.

Cassava processing and marketing GOOD PRATICES AND LESSONS LEARNT 1.Use of technical working group partners meetings to address trouble-shooting issues in business development/micro-enterprises fund sub-components; 2.Design of business development and marketing training modules and guidelines for conducting training based on experiences and lessons learnt from other IFAD funded projects (ie: CBRDP, REPII ); 3.Use of technical service providers (TSPs) to execute consultancies in the Annual Work Plan; 4.Ensure institutional support and technical assistance subsidy in development financing rather than subsidized interest rates which, in the past, lead to distortion of rural financial markets;

Cassava processing and marketing GOOD PRATICES AND LESSONS LEARNT 5.Introducing matching grants to replace confessionals interest charges which had poor recovery rates; 6.Establishing stronger linkages within the chain to allow production/supply and demand to meet.

Cassava processing and marketing MAIN SHORTCOMINGS (DIFFICULTIES ENCOUNTERED AND SOLUTION FOUND) 1.Start-up activities extended a bit too long into actual implementation of components – specific planned activities.  Original planning had to be adapted to new circumstances. 2.Getting MOFA staff in target districts, key implementation partners (IPs) and other stakeholders to be at the same level of understanding of departures of RTIMP from RTIP has been quite challenging.  District planning workshops, stakeholders and business fora are being used to bridge gaps of understanding. 3.The fact that financial support is not being directly extended to farmer has been a contentious issue at all fora.  The indirect but sustainable benefits to be accrued to farmers by enhancing operational capacities and efficiency of processors is gradually settling.

Cassava processing and marketing MAIN CHALLENGES AHEAD AND REQUIRED ACTIONS 1.Liquidity status of PFIs to provide funds under MEF is being debated hectically at Technical Working Group Meetings.  RTIMP exploring means of drawing resources from CBRDP residual funds;  RTIMP considering possibility of establishing wholesale medium – term funds at ARB Apex Bank to be accessed by PFIs. 2.Matching grant-leasing arrangements for the purchase of processing equipments seems a bit complicated to PFIs and beneficiaries. 3.Having in place a cost-effective market/trade information system for RTIMP.  RTIMP benefiting assistance from RCPMI.

Cassava processing and marketing ROOT AND TUBER IMPROVEMENT AND MARKETING PROGRAMME (RTIMP) GHANA