Northern Ghana Drought: Govt signs $5m insurance payout against future occurrence

The government is intensifying efforts to mitigate a looming food insecurity crisis due to the ongoing dry spell in the Northern and Middle Belts.

To address the situation, the government has mobilized funds, imposed a temporary ban on grain exports, and prioritized grain imports.

Finance Minister, Dr. Mohammed Amin Adam announced that the government has purchased a $1 million insurance policy to protect smallholder farmers in the northern region against future droughts.

The policy will pay out $5 million in the event of a drought.

He said, “The government has purchased an insurance policy against future drought in the northern region. We have purchased an insurance policy by which we are paying the premium of one million dollars and the payout will be five million dollars when we experience such drought, and this will cover smallholder farmers in the northern region.”

Minister for Food and Agriculture Bryan Acheampong justified the government’s request to withdraw GHS 500 million from the contingency fund, outlining plans for disbursement as part of the total GHS 8.3 billion needed.

The funds will be allocated for seed and fertilizers, feed grants, cash transfers, rice and maize imports, and poultry feed.

“We have a commitment coming from the contingency fund of 500 million, so we’ll apportion it into these areas. Not in equal proportions because some of the items are being imported so whatever we get from the agreed budget, from the contingency fund and from other allocations that the Ministry makes, we’ll apportion them to whatever we are dealing with.”

Chair of the Finance Committee of Parliament, Patrick Boamah, assured that the funds will be approved immediately once all release criteria are met, despite concerns raised by the Minority.