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Govt, Agri Terra sign MoU to restructure agriculture sector
Govt, Agri Terra sign MoU to restructure agriculture sector

Govt, Agri Terra sign MoU to restructure agriculture sector

The government of Ghana has signed a memorandum of understanding (MoU) with Agri Terra to help restructure and transform Ghana’s agricultural sector.

The agreement will see the two work together to support cooperatives in the agricultural sector and farmer organisations in Ghana by providing them with business development services.

The Global Director of Agri Terra, Mr Cees van Rij signed on behalf of the company, while the Minister of Employment and Labour Relations, Mr Ignatius Baffuor Awuah signed for the government.

Speaking at the launch of Agri Terra in Ghana and the signing ceremony, Mr Rij said cooperatives were vital instruments to spur real economic development in the agricultural sectors of African countries.

He said Agri Terra had a local team with advisers who would provide business services management and help create an enabling environment for farmers.

“For us, the key message here is, Ghana is in the process of structural transformation, meaning people are moving out of agricultural and getting into other jobs and those farmers who are really keen in improving their business can become successful only if they are organised and part of cooperatives.

“This will enable the cooperatives to take care of buying cheaper inputs and selling their produce on the market for a better price. Cooperatives in a way are vehicles to spur agricultural development,” he stated.

MoU with gov’t

Mr Rij said the company signed the MoU with the government because it did not want to work in an isolated way.

“We want to be embedded in the local context and the MoU with the government is very key to achieve this. It has to do with not just implementing small projects or working with few cooperatives but about transforming and modernising the cooperative sector in Ghana.

“We, therefore, need policies and the government’s institutions so that together with the government, the private sector and financial institutions, we can achieve this aim. 

“The MoU will guide us to strengthen and build a strong partnership between the government of Ghana and Agri Terra. The agreement is for a longer period so we are here to stay in Ghana,” he explained. 

He said there was a huge potential for farming and rural agricultural development in the country and Agri Terra was, therefore, here to support that transformation. 

“The MoU doesn’t have an end date and we hope it becomes much more than a piece of paper and be put in practice to transform the sector for it to become a very vibrant economic sector,” he stated.

Contributor to economic growth

For his part, Mr Awuah, in a speech that was read on his behalf, said the cooperative system had proven to be great contributor to socio-economic growth and development around the world.

He said Ghana had also identified with the importance of cooperative societies in the national development agenda since the days of independence from colonial rule.

“Cooperatives have had a long and illustrious impact on the economic history of the nation. The continued relevance of the cooperatives movement to the country’s growth and development cannot be overemphasized,” he noted.

Mr Awuah said cooperatives provided great vehicles for community growth and development in a developing economy such as Ghana.

“The cooperatives system already has the principles and processes to ensure inclusive and sustainable development.

“Several countries including South Korea, New Zealand, and the United Kingdom have demonstrated the pivotal role cooperatives play in enhancing the contribution of the private sector to socio-economic growth,” he stated.

He said the ministry was, therefore, ready and willing to assist the development of cooperatives in the country.

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