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Ghana has received a $2.8 million crop insurance premium to support smallholder farmers in northern and southern regions affected by the 2024 dry spells. The funds will also cover premiums for flood-related damages in Kumasi, Accra, and Takoradi.
A source at the Ministry of Finance disclosed to the Ghana News Agency that the ministry is finalizing internal processes to facilitate prompt payments to impacted farmers.
The initiative, funded by the Global Shield Solution Platform (GSSP), aims to provide financial relief to vulnerable farming communities. GSSP is an international non-profit organization dedicated to offering pre-arranged financial support to disaster-affected regions.
Last year, the Ghanaian government paid a $1 million crop insurance premium to the African Risk Capacity (ARC) to safeguard farmers against the dry spell. In addition, the government announced a GH¢1,000 assistance package for farmers deemed particularly vulnerable to climate-related agricultural challenges.
According to the Ministry of Food and Agriculture, the 2024 dry spell impacted 1.8 million hectares of crops, affecting approximately 980,000 farmers. The total losses were estimated at GH¢22.2 billion, with affected regions contributing around 62% of Ghana’s annual grain supply.
The adverse weather conditions led to a shortage of cereals, a significant investment loss of GH¢3.5 billion, and a revenue loss of GH¢10.4 billion. Many farmers in the northern regions suffered severe livelihood disruptions due to crop failures.
The African Risk Capacity (ARC), established in 2012 at the request of African Union Heads of State, collaborates with African nations to manage and respond to natural disasters effectively. The institution provides a reliable means of financing disaster-related costs, promoting stability and resilience in affected regions.
The crop insurance premium is expected to help farmers recover and rebuild, boosting agricultural productivity and food security in Ghana.
