Duggleby & Associates, Inc.
   

 

VALUE CHAIN ANALYSIS EXAMPLE

Agricultural Value Chain Financing for Millennium Challenge Compact in Ghana

During April-May, 2006, the firm assisted the Millennium Challenge Corporation (MCC) with design of a $547 million project being implemented in Ghana to increase production, processing and exports for value added agricultural products in 23 Districts, with emphasis upon 15 where farmers and processors are underserved with production resources, credit and access to markets. The project will also assist expansion of the agric sector through investment in vital infrastructure in several export value chains, technical assistance to farmer associations in introducing new crops and expanding markets for existing ones, and financing of the working capital needs of producers and input suppliers.


Working with an agribusiness development specialist, Ms. Duggleby assisted assessment of several export and food crop value chains, looking at inputs supply systems, production, processing and marketing, as well as gaps in the value chains where financing was needed but not available. In response to field findings, she designed two credit products to be extended through commercial banks with a partial guarantee from the MCC facility: a production credit enabling farmers in producer associations to secure timely and appropriate credit for production of export and food cash crops, and a supplier credit enabling banks to extend working capital credit to input retailers willing to locate or expand in underserved rural districts in Ghana. Training for risk management and credit supervision for banks and other financial intermediaries was also included.

 


Rice Processing in Ghana.

 

 

 

 

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VALUE CHAIN FINANCING