Italy Invests €154 Million to Transform Ghana’s Agricultural Value Chains

Ghana has secured a €154 million financing agreement from the Government of Italy to support a major transformation of its agri-food ecosystem. The funding underpins a three-year initiative called “Strengthening Agri-Food Ecosystems in Ghana,” which aims to modernize farming methods, improve food security, and build climate resilience within the nation’s agricultural value chains.

Speaking at the signing, Minister for Food and Agriculture Eric Opoku highlighted that this collaboration will target the development of 10,000 hectares of farmland into a model farm. The project will prioritize crops such as maize, rice, tomato, and soybean, and will operate year-round under an irrigation system designed to ensure consistent production even during dry seasons.

One of the key elements of the initiative is the partnership between Ghanaian research institutions and Italian agronomic organisations. The International Centre for Advanced Mediterranean Agronomic Studies (CIHEAM) will collaborate with Ghana’s Council for Scientific and Industrial Research (CSIR) to create a soil analysis and crop suitability chart, improving efficiency and crop yield.

CIHEAM will also work with the West Africa Centre for Crop Improvement (WACCI) at the University of Ghana to establish a national seed bank, which is essential for long-term sustainability and food system resilience. This will support local farmers and researchers with quality seeds tailored to Ghana’s agroecological zones.

Beyond production, the funding includes social infrastructure development for local communities. The plan includes the construction of schools, ICT hubs, social centres, and proper sanitation facilities. These investments are designed to enhance rural livelihoods and link agricultural development with community wellbeing.

Officials say the project will also help mitigate the impacts of climate change. By combining irrigated farmland and climate smart practices, Ghana hopes to reduce its reliance on rain-fed agriculture, which remains vulnerable to droughts and erratic weather patterns.

Ghana’s government, through this initiative, is investing in both the short-term goal of food security and the long-term vision of institutional capacity building. The three-year timeline is expected to build strong foundations for sustainable and resilient agriculture that can support economic growth and food sovereignty.

Farmers, agribusinesses, and development partners have welcomed the deal. Many see it as a breakthrough that combines technical innovation with community development, ensuring that rural economies benefit directly from the investment.

Analysts have noted the significance of the agreement in the broader context of Ghana’s economic priorities. Strengthening agri-food systems is central to national development, especially as the country seeks to reduce import dependence and enhance local production capacity.

The financing from Italy also underscores the importance of global partnerships for sustainable development. By building climate resilient infrastructure and institutional capacity, Ghana is setting a precedent for high-impact cooperation in African agriculture.

As implementation begins, attention will turn to progress in farm development, infrastructure construction, and technology adoption. If successful, this model could be replicated in other nations seeking to modernize their food systems while improving community welfare and environmental resilience.