Solidaridad West Africa mobilizes 4 million euros participating SMEs

Solidaridad West Africa as part of the second phase of the Sustainable West Africa Oil Palm Programme (SWAPP II) has mobilised a total of 4 million euros from financial institutions for participating small and Medium Enterprises (SMEs).

Mr. Isaac Gyamfi, the Regional Director for Solidaridad West Africa, speaking at the programme, lauded the collaboration between Solidaridad and financial institutions to help mobilize the funds for the SMEs.

“It is worth noting that with the support, collaboration and additional financing from the German government, oil palm is now one of the few agricultural Technical and Vocational Education and Training that has a nationally accredited in the competency-based training curriculum with accredited schools” he said.

Meanwhile, a total amount of 1.9 million euros was mobilised by Village Savings and Loans Associations, established under the programme.

Mr. Isaac Gyamfi noted that aside from strengthening the capacity of project beneficiaries, the programme engaged financial institutions to build their capacity to enable them to support the farmers.

“As part of the process, 113 financial institutions and impact investors were engaged, 56 financial institutions were trained in oil palm business appraisal”.

Mr. Gyamfi indicated that under the programme, 384 Village Savings and Loans Associations were established by Solidaridad and successfully linked to financial institutions. Mr Gyamfi stated that to achieve the goal set out, the programme focused on improving access to finance and providing technical support for small and medium enterprises based on two complementary business cases.

The Regional Director said the programme resulted in increased oil palm farm yield of beneficiary smallholder farmers from an average of 5.2 to 9.1 tonnes per hectare.

“Seven improved oil palm mills were constructed, while 13 were also upgraded as part of efforts to increase productivity with the programme supporting small and medium enterprises to establish 55 Rural Service Centres” he added.

Four-year Programme

The four-year programme, implemented between 2018 and 2022, sought to transform the West African palm oil sector into an inclusive and sustainable sector through micro, small and medium enterprises that provide large-scale yield intensification and farm rehabilitation services to oil palm farmers and efficient processing of fresh fruits bunches in Ghana, Cote d’Ivoire, Liberia, and Sierra Leone.

They are the establishment of rural service centres supplying farmers with the necessary inputs and best management practices (BMP) for the cultivation of oil palm and the establishment of more efficient and environmentally sound SME milling operations SWAPP II, which was co-funded by the Swiss Government through the State Secretariat for Economic Affairs and the Embassy of the Netherlands in Accra, follows the successful implementation of the first phase (2013-2017).

It demonstrated the business case for developing a sustainable West African oil palm and processing sector along the lines of small and medium enterprises.

Mr. Jeroen Verheul, the Dutch Ambassador to Ghana, noted that the Embassy is excited to have collaborated with the Embassy of Switzerland to co-fund the second phase of the Sustainable West Africa Palm Oil Programme in Ghana. He said the Embassy’s upcoming cooperation strategy for the next five years in Ghana would focus on trade and jobs, and the cocoa and horticulture sectors.

The ambassador noted that a total of 53,602 beneficiaries were reached in the four implementing countries.

In Ghana, Solidaridad strengthened the Oil Palm Development Association of Ghana as the umbrella private sector Association for the sector and built its capacity to contribute to the advocacy for the establishment of the Tree Crop Development Authority.