AfDB grants Ghana $18.8 million to boost rice production

The African Development Bank (AfDB) has provided Ghana with an $18.8 million grant to strengthen its rice value chain and support the government’s target of achieving self-sufficiency by 2028.

The grant is being implemented under the Regional West Africa Resilient Rice Value Chains (REWARD) project, according to the Ghana News Agency (GNA) on October 8, 2026.

The initiative will support rice cultivation, seed production, processing and market access as Ghana seeks to reduce its dependence on rice imports, estimated to cost $500 million annually.

AfDB grants Ghana $18.8 million for rice production

Ghana’s Minister of Food and Agriculture, Eric Opoku, said the project would improve productivity, strengthen the rice value chain and enhance the competitiveness of locally produced rice.

• “The African Development Bank has provided $18.8 million grant to Ghana to support the development of the rice value chain and help the country achieve rice self-sufficiency by 2028,” the statement said.

The project will develop 3,200 hectares for rice cultivation and increase yields from 3.5 tonnes to 4.5 tonnes per hectare. More than 20,000 smallholder farmers across selected districts are expected to benefit.

It will also support seed centres, 10 rice-processing centres, farm machinery and hermetic storage facilities to improve processing and reduce post-harvest losses.

Ghana’s milled rice production rose from approximately 650,000 tonnes in 2024 to 960,000 tonnes in 2025, but domestic output met only 56% of demand. The government aims to produce 3.31 million tonnes of paddy rice annually by 2028.

The project is expected to launch in the first week of November 2026, ahead of the 2027 farming season. Separately, Japan has provided a $2.5 million grant for rice seed-production equipment, expected to arrive in November.

Ghana’s push to reduce rice imports

Ghana has pursued different financing options to support businesses and key agricultural activities, including raising funds for farmers and sustaining the country’s supply chain.

• In January 2024, the African Development Bank (AfDB) had approved a $10.5 million investment to support businesses across sub-Saharan Africa through Seedstars Africa Ventures, a fund focused on financing and expanding innovative businesses.
• Ghana was seeking to raise $1 billion, earlier in May, through a domestic bond to finance cocoa purchases for the 2026/2027 season. The proposed borrowing was intended to help the Ghana Cocoa Board (COCOBOD) fund purchases from farmers and reduce its reliance on foreign financing.
• The board would later raise GH¢3.39 billion in October, an equivalent of about $288 million, through a domestic debt issuance to finance cocoa purchases. The amount fell short of the GH¢4 billion target, leaving a funding gap as the country sought to secure financing for the cocoa season.

These developments highlight Ghana’s use of different financing channels to support economic activity, while the AfDB’s investment reflects broader efforts to improve access to capital for African businesses.

AfDB expands regional food security support

Development partners have continued to support agricultural production and food security across West Africa and Nigeria through funding, supply-chain improvements and humanitarian assistance.

• In March 2025, AfDB and the Economic Community of West African States (ECOWAS) had signed a $12 million grant agreement for the Rice Resilient Value Chains Development Project (REWARD), aimed at strengthening rice production and food security across West Africa.
• AfDB, earlier this year, approved a $200 million loan for Nigeria’s climate-smart agricultural development programme, supporting farmers’ access to quality inputs and modern farming technologies.
• In May 2026, a Nairametrics market survey found that a 50kg bag of rice sold for between N53,000 and N82,000 across Nigeria, reflecting regional differences in transportation costs, supply chains and demand.
• In June 2026, Thailand had donated 12 metric tonnes of rice worth $22,000 to Nigeria for food-security support through the World Food Programme, particularly for vulnerable communities in the North-East.

These developments highlight ongoing efforts to strengthen agricultural production, improve food security, and reduce dependence on food imports across the region.