Value for Money (VFM) Analysis of Oil-Funded Irrigation Projects in Ghana - Keyime & Ohawu
Ghana can no longer boast of the agriculture sector as the backbone of her economy. Agriculture sector’s contribution to Ghana’s GDP has been declining continuously at a fast rate for more than three decades now. As of 2014, agriculture’s share of Ghana’s GDP was only 19.9% behind services (51.7%) and industry (28.4%), compared to 29.8% in 2010 when Ghana became an oil producing country, and 41.3% at the beginning of the 4th republic. This is an indication of underperformance of the agriculture sector which has serious implications for food security for Ghana’s growing population. The over-reliance on rain-fed agriculture due to lack of funds to invest in irrigation schemes does not allow for crop production all year round. To salvage the situation, the Government of Ghana has invested portions of the Annual Budgeting Funding Amount (ABFA) from Ghana’s petroleum receipts into agriculture modernization in accordance with Section 21(3) of the Petroleum Revenue Management (Amendment) Act 2015 (Act 893). In 2015, close to GH¢ 16.44 million went to support the construction and rehabilitation of dams and irrigation infrastructure, including the Keyime and Ohawu irrigation projects, as well as fertiliser subsidy1 .