Mr. President of IFAD
H. E. The Vice Prime Minister of the Republic of Cameroon
The President of the African Development Bank
The Managing Director of the World Bank
Chairman of the Governing Council
Distinguished Guests
Honourable Governors
Ladies and Gentlemen

It is a great honour for me to be invited by the President of IFAD, Mr. Lennart Båge, to be part of this important event.  Let me take this opportunity on my own behalf and that of H. E. the President Mr. John Agyekum Kufuor and the people of Ghana to extend my gratitude to the Italian Government and the IFAD Management for the warm hospitality accorded me and my delegation.

Mr President, our assembly this morning marks the opening of the Thirty-first Session of the Governing Council of IFAD and the beginning of the year-long commemoration of thirty years of its existence.  Permit me to use this opportunity to congratulate all those who in diverse ways sacrificed over the years to make IFAD what it is today.

Mr. President, I am convinced that fighting rural poverty and hunger, which has been at the core of IFAD’s mandate since its establishment, is more relevant than ever if we are to reduce poverty and hunger by half by the year 2015.

Since its establishment, IFAD has been pursuing its mandate by focusing its activities in developing countries by supporting rural communities to reduce the incidence of poverty, hunger and malnutrition.  In pursuing this agenda, IFAD has sought and collaborated effectively with other Development Agencies, Civil Society Organisations and host governments.

Mr. President, I must say that Ghana is one of the fortunate countries to have benefited from IFAD’s support over the years and still continues to receive support from the Organisation. I recall with pride, Ghana’s first project under IFAD over 28 years ago. It was named the “Volta Region Agricultural Development Project”.

Currently, the areas of IFAD project intervention in Ghana embrace some 2.4 million people.  Its scope includes the development of rural infrastructure, provision of potable water, credit and financial services, building the capacity of farmer groups and Extension Agents and promoting the development of small-scale non-agricultural enterprises.

Indeed IFAD’s interventions in Ghana have led to the discovery of new approaches that can be up-scaled by the Government and other Donors operating in the country for unearthing the entrepreneurial capacities of the rural dwellers to have alternative livelihoods.

Let me say Mr. President that tremendous successes have been made in the areas of capacity building and rural infrastructure provision, particularly in the provision of small-scale irrigation facilities in the northern sector of the country.  For achieving these growth poles, IFAD has been able to attract 60% of co-financing from its collaborating partners like the World Bank, African Development Bank and the German Credit Institution for Reconstruction (KfW).

Thus, under the Rural Financial Services Project, Ghana and its Partners have built the Apex Bank of Rural Banks thereby supporting the elaboration of Ghana’s Micro-finance sector. Consequently, the Rural Banks increased their outreach to clients in terms of savings and credit schemes from 1.3 million to 2.2 million in 2004 of which 45% were women.

Mr. President, permit me to say that the challenge of reducing poverty and hunger by half and meeting the other Millennium Development Goals in the next seven years is enormous regarding the current slow pace of addressing the challenges.

Agriculture in Sub-Saharan Africa continues to be rain-fed.  It also depends on the use of simple tools with minimal use of improved inputs and technologies resulting in low productivity.  Market infrastructure and institutions required to aid in the disposal of farm produce for reasonable revenue generation by producers are still fairly limited.

In addition to this, is the limited capacity to add value to farm produce and to access external markets.  The plight of the small holder farmer is further worsened by the lack of skills and opportunities for alternate sources of income during the off-farm periods.  These constraints contribute to the vicious cycle of poverty in which the average smallholder farmer in Africa is trapped.

It is my conviction however that, rural poverty could be reduced if pragmatic and well resourced policies are geared towards the development of the agricultural sector.

When this is done rural development could support rural populations with appropriate public infrastructure like irrigation facilities, feeder and access roads and marketing systems, as well as the provision of research and extension services.  Capacity building of the rural population is also essential to empower them to adopt improved technologies and practices. 

Honourable Governors, the issue of poverty can also be addressed through the promotion of sub-regional and regional trade.  We need to focus on our competitive advantages in the production of agricultural commodities and strengthen regional trade through more effective integration.

Mr. President let me state emphatically that, to achieve this, we need more effective collaboration and partnership between the developed and developing world. The essence of such partnership becomes more pronounced in the face of emerging global challenges which affect all nations. 

The issues of climate change, Bio fuel expansion and increasing food and agricultural commodity prices need to be addressed pragmatically.  In particular the role of Biofuel in meeting the energy needs of the future could be quite significant.

Apart from being environmentally friendly, its production has the potential to boost rural incomes as well as lower costs in petroleum dependent activities.

It is in this regard that I wish to urge more investment and cooperation in research facilities for the rapid commercialisation of bio-fuel production.  Ghana has some important on-going initiatives based on the jatropha plant and further investment will be most welcome in order for this source of energy to materialise.

Mr. President, I also wish to use this singular opportunity to urge all our members to remain committed to fulfilling their obligations to IFAD with respect to the payment of their subscriptions to the Fund. 

May I also appeal to this august body that as it goes into consultation on the 8th Replenishment of the fund it should come out with strategies that would seek ways for increasing the  subscription of member countries to the Fund and to also explore new avenues for generating resources to the Fund.

Let me also take this opportunity to appeal to the Non- Member Nations, Philanthropic Organisations, Civil Society Groups and Individuals who are committed to the attainment of the Millennium Development Goals to contribute generously to the Fund to enable IFAD step up its mandate.

Finally, as we move into the round table discussions on the topical issues of Climate Change, Bio fuel Expansion and Agricultural Commodity Prices, let us be objective in our deliberations so as to come out with solutions that will benefit all nations.

Thank you for your attention.