Ministry to source funds for processing plants

January 8, 2008 (Back Page Lead)

THE Ministry of Finance and Economic Planning is negotiating with a number of banks on behalf of 11 agro processing companies to help them access the needed working capital to begin operations by the second quarter of this year.
The companies, established in six regions, have set up plants to process agro foods but they have not succeeded in raising a total of $9.3 million needed to enable them to start operating.
In an interview with the Daily Graphic, the Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, said it was estimated that more than 500 youth who had registered with the National Youth Employment Programme (NYEP) would be employed on permanent basis by the companies once they started operating.
The companies are Sunripe Food Processing and Sunharvest in the Eastern Region who need $1.5 million and $500,000 respectively as start-up capital to operate.
The other companies which are all situated in the Central Region are Akpanga Organic Farms, $1 million; N & C Food Processing, $500,000; 2K Farms, $900,000, and Ilay Industries, $500,000, while those in the Greater Accra Region, namely Tayco and Can & Kaa, need $500,000 each to operate.
Mr Baah-Wiredu said the companies could produce between one and three tonnes of fruit juices, tomato puree, and process yam within an hour.
The minister explained that much progress had been made in connection with the sourcing of funds for the companies and gave the assurance that there would be fruitful results within three months.
He said 60 per cent of Ghana’s working population were involved in agri business which involved the production of food crops, storage, sale, processing and distribution from farms to the consumer.
The minister said it was unfortunate that volumes of processed foods were imported to make up for post-harvest losses.
For that reason, the minister said it was important that the necessary assistance was given to farmers and food processors to ensure food security at all times.
He said the operation of the companies would result in the creation of jobs for the youth, creation of wealth for farmers and the youth, conservation of foreign exchange through import substitution, as well as increase export earning.
He further pointed out that there would be increase in government revenue through taxation and rapid urbanisation of the districts, thereby reducing rural-urban migration, among other benefits.