MoFA warns Ghana could face GH¢643.9m bill over FSRP withdrawal

The Ministry of Food and Agriculture (MoFA) has cautioned that Ghana could be left with a GH¢643.87 million bill if the country proceeds with its withdrawal from the West Africa Food System Resilience Programme (FSRP).

The ministry said the amount represents contractual commitments already entered into for agricultural infrastructure projects being implemented under the programme.

Agriculture Minister Eric Opoku has appealed to the Finance Ministry to reconsider the decision to withdraw from the programme.

In a letter to the Finance Minister, he said the decision to ask the World Bank to begin Ghana’s withdrawal was communicated on September 23 without prior consultation with MoFA.

“The Ministry requests urgent reconsideration of the decision,” he stated.

According to MoFA, it has outstanding contractual commitments amounting to GH¢643,867,633.36 under the FSRP.

Of this amount, GH¢520.26 million is being financed through the World Bank’s International Development Association (IDA), while another GH¢123.61 million comes from the FS2030 Trust Fund.

The ministry warned that pulling out without securing an alternative source of funding could force the government to use other public funds to settle the commitments.

MoFA said this could disrupt ongoing projects, cause delays and increase project costs.

It also warned that contractors could bring claims against the government if the commitments are not honoured.

The ministry is therefore pushing for an urgent review of the withdrawal decision to protect the government from potential financial and contractual problems.

The FSRP is a regional programme aimed at improving agricultural productivity, strengthening food systems and supporting food security across West Africa.