The yawning gap between the production and demand for fertilizer locally will soon be bridged, thanks to the opening of a new fertilizer terminal by Norwegian chemical company, Yara, in Tema.
The new fertilizer terminal, to be enrolled under government’s One District, One Factory (1D,1F) is set to reduce the turnaround time for delivery at the port, since bulk materials will not be bagged at the portside and in turn increase the company’s production to 100 metric tonnes (2,000 50kg bags) per hour and storage capacity of about 50,000metric tonnes (1million 50kg bags).
The new facility is a full-scale production unit capable of producing and bagging different fertilizer blends and other fertilizer units, with the capacity to serve as a hub for other countries in West Africa.
Speaking at the inauguration of the $15million dollar facility at Tema yesterday, Executive Vice-President, Sales and Marketing, for Yara International, Mr Knutsen, said the company’s focus was not only to bring quality fertilizers to Ghana, but also “crop nutrition knowledge that we share throughout the value chain.
“We recently made Ghana our regional hub for our operations in West Africa,” he said, adding that “this investment represents a clear commitment by Yara to Ghana and to the country’s agriculture.”
Agriculture, Mr Knutsen pointed out, plays a crucial part in the economic development of Ghana and will play an even bigger role going forward.
“This terminal gives us more capacity to support the government to improve farming, among others via the Planting for Food and Jobs Programme,” Mr Knutsen added.
460,000 tons of fertilizer subsidy for farmers
Deputy Minister for Food and Agriculture in charge of Annual crops, Dr Sagre Bambangi announced an increase of fertilizer (subsidized) from 200,000 metric tons in 2018 to 460,000 metric tons to farmers under the Planting for Food and Jobs programme.
“Apart from the seed and fertilizer subsidy, we are also strengthening our extension services delivery as well as the overall value chain in the agricultural sector, including markets, processing, as we link up with the Ministry of Trade and Industry,” Dr Bambangi stated.
Deputy Minister for Trade and Industry, Mr Robert Ahomka Lindsay stated that the opening of the new fertilizer factory was critical to Ghana’s industrialisation programme, adding “this facility will support government’s industrialisation drive through the 1D1F programme.”
According to Mr Lindsay, a modernised economy must have a strong industrial sector, and hence the commitment of the government towards the successful implementation of the One District, One Factory (1D1F) programme.
“Government is seeking to address the challenge of urbanisation and underdevelopment among rural communities by attracting the private sector investments into the development activities of these communities,”
Jobs
At full capacity, under the 1D1F, the workforce is set to increase to 150 from the present 40 people, while Yara has a network of over 300 local retailers and distributors across the country.
Tremendous support for 1D1F
The Deputy Minister disclosed that the 1D1F programme had received massive support from the business community, both local and international.
Some local banks had pledged about GH₵4.5billion while some leading financial institutions such as the US EXIMBANK had pledged $300million and $400million from China National Building Materials in credit lines, accessible by business promoters.
100 projects ready for credit appraisal
As part of the processes of facilitating access to funds, the MOTI had recommended some 100 district enterprise projects to the financial institutions which had extended support to the 1D1F programme for further credit appraisal.
Mr Lindsay disclosed that selected projects had been assigned technical experts to provide free advisory services during the project implementation phase.
Managing Director of Yara Ghana, Mr Danquah Addo-Yobo said with the increasing recognition of Ghana as a hub for trade and investment in the West Africa Sub-region and the African continent in general, the new terminal opens several opportunities to the country.
“This terminal facility will make Ghana a hub for the supply of fertilizer inputs within the sub region and contribute to employment and revenue generation to the State” he noted.
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Source: Issac Aidoo/Finder Newspaper