Govt to launch $18.8m REWARD project to boost rice production in November, cut $500m import bill
The Ministry of Food and Agriculture is set to formally launch the $18.8 million Regional West African Resilient Rice Value Chains Project (REWARD) in November 2026 as part of efforts to increase domestic rice production and reduce the country's dependence on imports.
Agriculture Minister Eric Opoku said the African Development Bank-funded initiative would tackle major constraints across Ghana's rice value chain and position the sector for increased production ahead of the 2027 farming season.
“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 stated.
The project will focus on the northern savannah ecological zone, where 3,200 hectares of land will be developed for rice cultivation.
Farmers in the selected areas will receive improved seeds, mechanisation services and other production inputs aimed at increasing yields and improving productivity.
More than 20,000 smallholder farmers are expected to benefit, alongside rice processors, aggregators and other participants within the value chain.
The intervention 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.
Production gap remains
Mr Opoku said Ghana's milled rice production had increased from approximately 650,000 tonnes in 2024 to 960,000 tonnes in 2025.
Despite the growth, he said domestic production currently satisfies only about 56% of national demand, leaving a 44% shortfall that must be met through imports.
The Agriculture Minister said the continued reliance on imported rice was putting pressure on the country's foreign exchange resources.
He estimated that Ghana spends about $500 million annually on rice imports, arguing that a greater proportion of that money could remain in the domestic economy if local production and processing were expanded.
“That is money that could be earned by Ghanaian farmers, millers, and traders,” he stressed.
Government targets import dependence
The government is also working on a policy that would link rice import quotas to investments in domestic production.
Under the proposed arrangement, importers would be required to establish verifiable partnerships with local rice producers before they could obtain import permits.
Mr Opoku stressed that the policy was not aimed at banning imported rice but at encouraging importers to invest in the local 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 intimated.
More processing facilities planned
Beyond production, the REWARD project will support the establishment and upgrading of 10 strategically located rice processing centres.
The initiative will also improve storage infrastructure and strengthen connections between farmers, processors and markets to reduce bottlenecks along the value chain.
In a separate intervention, Japan has provided a $2.5 million grant to support Ghana's rice value chain with agricultural equipment.
The support includes eight combined harvesters and 11 seed-cleaning machines, which are expected to arrive in November 2026.
The government expects the combined interventions to strengthen production and processing capacity as it works towards narrowing the gap between domestic rice supply and national demand.