Midterm performance evaluation : Feed the Future mobilizing finance in agriculture (MFA) activity : evaluation report

However, the agricultural ecosystem in Ghana is beset with multiple limitations such as substantially less commercial bank lending, compared to other sectors. Resultantly, both firms and smallholders have reduced ability to modernize and upgrade agricultural value chains and expand agricultural trade. The FTF MFA Activity is a four-year contract and optional COVID-19 activities. Its goal is to increase the supply and affordability of commercial financing for farmers and agribusinesses targeting food security and trade facilitation of crops, thereby, spurring inclusive economic growth through agribusiness development in the 17 Zone of Influence regions (i.e., Northern Region, North East Region, Upper East Region, and Upper West Regions) This mid-term performance evaluation is purposed to assess the progress of work against the FTF MFA’s goal and objectives and establish an independent view of how the activity has been implemented in the initial 32 months (October 27, 2020-June 30, 2023). The evaluation focuses on assessing if the theory of change is still applicable to the FTF MFA activity; it is on course to achieve the expected results; and draw lessons from its implementation for possible redress. The design for the evaluation was principally qualitative, including a desk review of the Activity’s documents. A total of 50 KIIs and 14 FGDs were conducted. The primary data were thematically analyzed. Quantitative data were sourced from the Performance Indicator Tracking Table of the FTF MFA Activity and analyzed to assess its Life of Activity (LOA) targets. Our assessment generally shows that the FTF MFA"s use of strategic partnership, smart incentives, transactional advisors, and grantees have generally increased the supply of commercial financing to farmers and agribusinesses, though mostly unaffordable to smallholder value chain actors due to the high-interest rate. Notwithstanding, the financing has spurred growth in many agribusinesses enabling producers to increase their farm size and yield, while aggregators have increased supply of produce to processors and other consumers. Non-Financial incentives, mostly in the forms of extensive training, capacity-building, networking opportunities, and technical assistance, contributed to reducing the barriers to commercial agribusiness financing on the part of both lenders and beneficiaries. The FTF MFA Activity is socially inclusive as inclusivity was integrated into the project design. The activities of COVID grantees lessened the effect of the pandemic, especially on smallholder producers. These have generally improved the local economies of its catchment areas. By the end of the third quarter of year-three of the Activity’s implementation, 11 of the 27 targets in the PITT have already been achieved with the expectation of achieving the rest except for two: “number of deals with pension fund involvement,” and “value of annual sales of producers receiving USG assistance in target value chains.” The FTF MFA should consider reducing the Life of Activity (LOA) target for the former and work through its transactional advisors to secure a deal with some Pensions Fund. Also, FTF MFA should consider expanding the supply network of producers receiving USG assistance in target value chains in order to increase their sale value.