Northern Ghana Drought: Gov’t Secures $5M Insurance and Allocates Emergency Funds
- Government secures a $1 million policy providing a $5 million payout for future droughts
- Funds withdrawn from the contingency fund for urgent needs
- Finance Committee Chair guarantees swift approval of funds
To combat the growing threat of food insecurity due to the ongoing drought in Northern and Middle Belt regions, the government is ramping up its response.
Efforts include mobilizing financial resources, implementing a temporary grain export ban, and prioritizing grain imports.
Finance Minister Dr. Mohammed Amin Adam revealed that the government has invested in a $1 million insurance policy designed to shield smallholder farmers in the northern region from future droughts. This policy guarantees a $5 million payout if a drought occurs.
Dr. Adam stated, “We have secured an insurance policy to protect against future droughts in the northern region. By paying a premium of $1 million, we ensure a payout of $5 million to support our smallholder farmers when a drought strikes.”
In addition, Minister for Food and Agriculture Bryan Acheampong has defended the decision to withdraw GHS 500 million from the contingency fund. This amount will contribute to addressing the urgent needs of the sector, including the procurement of seeds, fertilizers, feed grants, cash transfers, and the import of rice, maize, and poultry feed, part of the total GHS 8.3 billion required.
Bryan Acheampong explained, “The GHS 500 million from the contingency fund will be allocated to various areas, though not equally, given that some items are imported. We will distribute the funds based on the agreed budget and priorities.”
Chair of the Finance Committee of Parliament, Patrick Boamah, assured prompt approval of the funds once all criteria are met, despite some reservations from the Minority.