Ghana: Review of bank assistance to the agriculture and rural development sector, 1997-2001

Date: 14/12/2005
Type: Country strategy and program evaluation
Sector(s): Agriculture & Agro-industry
Status: Completed
Ref.: CA10033

Evaluation Team

Le présent rapport a été préparé par Dr. A.Falusi et Dr E. Nyakotey (consultants), sous la supervision de M. E.K.N. MPANDE, Fonctionnaire en chef chargé de l’évaluation subséquente au Département de l’évaluation des opérations.

Objective

The review was commissioned in order to assess:  

(a) the quality of design of the Bank Group assistance strategy;

(b) whether the original assistance strategy development effectiveness (DE) objectives were correctly identified and aligned to the relevance of the over-all country sector DE goals; 

(c) how far the DE objectives of the assistance have been realised in terms of their effects on the development of economic activities and the consequent improvements in the well-being of target groups in the projects’ areas;

(d) how far the project DE objectives have been aligned to the sector DE objectives and contributed to poverty reduction and the consequent improvements in the well-being of target groups in the projects’ areas.

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  In addition to the above broad objectives, the study is also to examine:

(e) whether the Bank Group assistance strategy has had the desired impact on cross-cutting issues of improved food security, accelerated economic growth, natural resource management, environmental protection, gender balance, private sector promotion, regional integration, as well as human capacity building and institutional development, which are the main aims of Bank Group intervention assistance strategy;

(f) the overall development effectiveness of the Bank Group assistance strategy to Ghana’s agriculture and rural development sector and thereafter to reflect on good practices and draw lessons and make recommendations based on the conclusions of the study.

Main Lessons

  • Although all projects were relevant to the Bank Group assistance and to the country’s development objectives and priorities, the earlier projects that were implemented prior to the economic policy reforms (i.e. Nasia, Cotton and Oil Palms) performed poorly due to insufficient preparation and appraisal. This proved that relevance is necessary but not sufficient condition for satisfactory project performance. Quality at Entry, which focuses on technical feasibility of the interventions is an additional condition necessary for project’s satisfactory performance.
  • Good implementation of an agricultural project relies, firstly, on the farmers supporting the project concept, given that they are the main actors and beneficiaries. It also relies on the Borrower’s capacity to honour the financial commitments to the project and to follow Bank rules and procedures.

Main Recommendations

Recommendation(s) to the Beneficiary :

  • A participatory approach involving all stakeholders should be adopted at all phases of the project cycle to ensure that project beneficiaries participate in the identification, formulation, and appraisal and in the definition of objectives and the choice of priorities.
  • There is the need to cut down on the time lag between loan approval, signing and effectiveness. The Ministry of Finance(MOF) should be pro-active by initiating and co-ordinating activities within the executive (MDAs –MOF, MOJ, MOFA and EAS) and between the executive and legislature. The Agriculture and Rural Development Committee of the National Assembly should be informed and participate actively in all the stages of the programme/project cycle. This should shorten the time between presentation and approval by Parliament.

Recommendation(s) to the Bank :

  • Bank Group assistance to the agricultural and rural development sector should be based on projects/programmes appraised against the background of sector studies and reliable data. Project objectives should be clearly defined and targets to be achieved should be set against an established baseline to permit evaluation of project performance as well as impact assessment. 
  • The socio-economic environment as well as the legal and economic framework and institutions including the land tenure system within which Bank assisted projects are to be implemented should be given sufficient study before project approval.
  • The Bank Group is playing a role as a catalyst for increasing financial flow to Ghana to support the Country’s programmes. In this respect the Bank’s intervention even in terms of non-lending activities will provide opportunity to strengthen policy dialogue with GoG and the major stakeholders. It is therefore recommended that the Bank strengthen its presence in Ghana by setting up a Liaison office in the Country to enhance opportunity for Bank Group/GoG dialogue and its participation in the in-country co-ordination mechanism.
     
  • although there has been poverty reduction overall during the time period, there are still pockets of poverty the reduction of which will require better targeting. Rural areas, where the most vulnerable poverty group live, should receive focus in the design of ADB projects.
     
  • The portfolio of investment in Ghana has been lopsided in favour of agriculture (crops). There is the need to support fresh initiatives in forestry/agro-forestry and fishery. 

Recommendation(s)  to the Bank and to the beneficiary :

  • As the multi-donor sector investment programming becomes firmly established in the agricultural sector, the issue of monitoring performance becomes of urgent importance. Clear performance indicators, which effectively guide implementation, should be agreed and implemented. The indicators themselves should be evaluated and revised regularly to ensure that they provide timely and effective information.