Introduction The developmental goal of the project is to test new concepts for entrepreneurial and capacity development of rural agro-processing activities based on value chains analysis facilitating forward and backward linkages. The implementation of the REDS Project in cooperation with the Government of Ghana and the National Board of Small Scale Industries (NBSSI) commenced in February 2002 with financial support from the Government of Japan.

Linking rural production with urban markets

The project staff, jointly with staff of the NBSSI, has been supporting communities in three Regions of Ghana, i.e., Eastern, Western and Volta regions, and aims at strengthening the technical and managerial capacity of rural production groups, mainly women who handle more than 90% of the post harvest operations, based on established commercial arrangements with formal sector companies that process produce on a larger scale, package, and market: so called 'lead firms'. Project objectives have been realised by capacity building in the provision of an integrated package of services for rural and community productive groups comprising: Improving marketing capacity and market potential of assisted enterprises through the establishment of fair and commercial links with Lead Firms. Facilitating auto-replicability and sustainability through omission of any donations to target communities, and reliance on existing institutions and regulations for micro credit. Developing working relationships with stakeholders and ensuring appropriate operative linkage for technical assistance provision to selected enterprises " Development of training packages dedicated to productive group mobilization, attitude and behaviour change, specific in the field of financial discipline and product quality. Creating awareness and improve food safety and hygienic practices. Increasing the use of improved and appropriate technologies by assisted enterprises.

Project Achievements

The project has so far demonstrated that outcomes of income generation support activities are more sustainable when rooted in the local contexts and networks of stakeholders from private and public sectors.

• The project collaborates with a number of agencies and organizations such as The National Board for Small Scale Industries (NBSSI), The Social Investment Fund (SIF), GRATIS FOUNDATION, Rural Banks, Formal/private sector commercial firms (Lead firms), Food and Drugs Board (FDB), Ghana Standards Board (GSB), Ghana Export Promotion Council (GEPC), District Assemblies among others.
• Thirty-five (35) selected groups involving 1,069 members with a about 80% being women - have been trained in business skills. Many more groups in the areas of operation have expressed interest in benefiting from the Project's interventions. Group formation and exposure to good governance practices precede entrepreneurial and business skills training, and all groups have for example, been assisted to prepare their constitutions and hold elections where necessary among other good governance practices introduced.
• Groups have been trained in good manufacturing and hygienic practices. Manuals have been developed to guide field personnel to continuously challenge beneficiaries. Products from groups are tested for quality towards further product improvement and for marketing purposes.
• Partner Rural Banks grant loans to groups who meet their criteria to invest in equipment for their processing activities. These groups would have earlier constructed the processing workshops from their own resources or through bank credit.
• All groups and in some cases individuals within a group have opened accounts with the Rural Banks. By December 2005, four Rural Banks had loaned a total of US$132,900 to 21 groups. Some of the groups have received their second and third cycle of loans indicating Banks' confidence in them. Senior and junior Management personnel from Rural Banks have been trained in micro-finance schemes and are using software to facilitate loan administration to rural entrepreneurs.
• Banks are using funds from their own resources to loan to groups and in some instances have made further investments in computers and motor bikes to enhance monitoring activities. There has been no matching funds or funds guarantees to the banks. They are driven by their profit and development motives making the methodology sustainable.
• Several Lead firms and raw material suppliers have identified opportunities in doing business with the groups leading to backward and forward linkages with farmers and urban markets.

Current Status

The project which has already exceeded its completion date is coming to an end. There are processes to secure an extension of the project which will dwell on more extensive geographical coverage. It is expected that a joint project between UNIDO, UNHCR and FAO titled "Assistance to the refugees of the UNHCR settlements in Buduburam and Krisan for their repatriation, local integration and resettlement through micro and small scale enterprises development" would commence in 2006.