Ghana to cut $500m rice import bill with $18.8m REWARD project
The Ministry of Food and Agriculture is set to officially launch the $18.8 million Regional West African Resilient Rice Value Chains Project (REWARD) in November 2026, ahead of the 2027 rice production season.
Agriculture Minister Eric Opoku said the African Development Bank-funded initiative is aimed at addressing major challenges within Ghana’s rice value chain and reducing the country’s dependence on imported rice.
“The ministry, in consultation with the bank, plans to formally launch the REWARD project in the first week of November 2026 so that the project is in place for the 2027 production season in the project areas,” he said.
Boosting rice production
Under the project, 3,200 hectares of land in Ghana’s northern savannah ecological zone will be developed for rice cultivation.
The initiative will provide farmers with improved seeds, mechanisation services and other agricultural inputs to increase productivity.
More than 20,000 smallholder farmers in selected districts are expected to benefit, alongside rice processors, aggregators and other players across the value chain.
The project forms part of the government’s broader objective of achieving rice self-sufficiency by 2028, with a national target of producing 3.31 million metric tonnes of paddy rice.
Mr Opoku said milled rice production rose from approximately 650,000 tonnes in 2024 to 960,000 tonnes in 2025.
Despite the increase, domestic production currently satisfies only about 56% of national rice demand, leaving a 44% shortfall that is met through imports.
Reducing import dependence
The Agriculture Minister said Ghana spends about $500 million every year importing rice, resulting in substantial foreign exchange outflows that could instead benefit local farmers, processors and traders.
“That is money that could be earned by Ghanaian farmers, millers, and traders,” he said.
As part of efforts to reduce reliance on imports, the government is also preparing a policy that will link rice import quotas to investment in local production.
Under the proposed arrangement, importers would be required to establish verifiable partnerships with domestic rice producers before obtaining import permits.
Mr Opoku clarified that the policy would not prohibit rice imports but is intended to encourage greater investment in Ghana’s rice industry.
“We are not banning imports, which will only hurt consumers. Instead, we are channeling the value of imports into local production and empowering our farmers,” he said.
Expanding processing capacity
The REWARD project will also support the establishment and upgrading of 10 strategically located rice processing centres, while improving storage facilities and strengthening connections between farmers and markets.
Separately, Japan has provided a $2.5 million grant to support Ghana’s rice value chain with equipment, including eight combined harvesters and 11 seed-cleaning machines.
The equipment is expected to arrive in November 2026 as the government intensifies efforts to bridge the gap between domestic rice production and national demand.
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