Knowledge Management & Learning Study

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Knowledge Management & Learning Study KNOWLEDGE MANAGEMENT & LEARNING STUDY ASSESSING THE USAID ADVANCE II PROJECT’S GRANTS PROGRAM AS INCENTIVE FOR VALUE CHAIN COMPETITIVENESS: APRIL 2019 USAID ADVANCE II Grant Study Report, April 2019 GHANA ADVANCE II PROJECT COOPERATIVE AGREEMENT NO. AID-641-A-14- 00001 AOR USAID: CHIEF OF PARTY: DISCLAIMER This publication was produced by ACDI/VOCA. This report is made possible by the support of the American people through the United States Agency for International Develop (USAID). The contents of these and said items are the sole responsibility of ACDI/VOCA and do not necessarily reflect the views of USAID or the United States government. Photo credit: ACDI/VOCA 2 USAID ADVANCE II Grant Study Report, April 2019 Contents EXECUTIVE SUMMARY .................................................................................................................................. 6 1. BACKGROUND ....................................................................................................................................... 8 2. PURPOSE AND EXPECTED USE OF THE STUDY ...................................................................................... 9 2.1 Research Questions ...................................................................................................................... 9 3. METHODOLOGY AND DATA COLLECTION TECHNIQUES ..................................................................... 11 3.1 Desk Study ................................................................................................................................... 11 3.2 Study Design................................................................................................................................ 11 3.3 Sampling Approach ..................................................................................................................... 11 3.4 Survey Instruments ..................................................................................................................... 12 3.5 Data Collection ............................................................................................................................ 12 3.6 Quality Control ............................................................................................................................ 13 3.7 Data Analysis ............................................................................................................................... 13 3.8 Study Limitations ........................................................................................................................ 13 4. MAIN FINDINGS................................................................................................................................... 13 4.1 Socio-Demographic Characteristics of Respondents .................................................................. 13 4.2 Catalyzing Business Growth and Network Connectivity ............................................................. 15 4.3 Technology Adoption and Improved Crop Yields ....................................................................... 21 4.4 Improved Product Quality and Access to Markets ..................................................................... 24 4.5 Building Capacity of Local Organizations to Influence Change ................................................... 28 4.6 Inclusiveness of Grants ............................................................................................................... 29 5. KEY OBSERVATIONS AND CONCLUSIONS ............................................................................................ 33 3 USAID ADVANCE II Grant Study Report, April 2019 LIST OF TABLES Table 1. Study samples .......................................................................................................................... 12 Table 2. Equipment for field preparation provided as in-kind grants ........................................ 14 Table 3. Equipment for planting and seeding .................................................................................. 14 Table 4. Equipment for harvest and post-harvest processing ...................................................... 15 Table 5. Equipment for produce transport and marketing provided as grants ....................... 15 Table 6. Office management and communication equipment .................................................... 15 Table 7. Hectares ploughed for OGs, OBs own acreage and number of OGs reached before and after intervention ............................................................................................................................ 18 Table 8. Value of grantees’ ploughing services offered to OGs ................................................... 18 Table 9. Type of additional services grantees offered to OGs ..................................................... 19 Table 10. Value (GHS) of additional services through in-kind grant support .. Error! Bookmark not defined. Table 11. Respondents’ estimate of risk of yield loss associated with late ploughing ............ 22 Table 12. Respondents’ estimate of expected yield loss associated with late ploughing ...... 22 Table 13. Type of improvement in grain quality obtained with use of shellers/threshers and tarpaulin as indicated by respondents ............................................................................................... 25 Table 14. Method of shelling/threshing before the grant .............................................................. 25 Table 15. Estimated volume of produce sales and value through market linkages by respondents .............................................................................................................................................. 27 Table 16. Grantees’ ratings of end markets ..................................................................................... 27 Table 17. Suggestions made by OBs and OGs (by type of equipment) to improve the grant program .................................................................................................................................................... 30 LIST OF FIGURES Figure 1. Highest Level of Education of Respondents ................................................................... 14 Figure 2. Funding sources for beneficiaries’ additional investment in equipment.................. 16 Figure 3. Grantees’ agricultural and non-agricultural investments in equipment (by item) 17 Figure 4. Grantees’ agricultural and non-agricultural investments (by value of expenditure) .................................................................................................................................................................... 17 Figure 5. Percent of OBs offering services to women on more favorable terms .................... 20 Figure 6. Percentage of OB respondents adopting mechanical-related technologies ........... 23 Figure 7. Reasons for weighing scales improving prices ................... Error! Bookmark not defined. 4 USAID ADVANCE II Grant Study Report, April 2019 ACRONYM LIST ADVANCE Agricultural Development and Value Chain Enhancement BDS Business Development Services EPA Environmental Protection Agency FBO Farmer-Based Organization FGD Focus Group Discussion FOG Fixed Obligation Grant GAP Good Agronomic Practice I-3 Fund Innovation and Investment Incentive Fund ICT Information and Communications Technology IKG In-Kind Grant LPG Local Partnership Grant MoFA Ministry of Food and Agriculture MT Metric Ton NGO Nongovernmental Organization OB Outgrower Business OG Outgrower PHH Post-Harvest Handling USAID United States Agency for International Development VSLA Village Savings and Loan Association ZOI Zone of Influence 5 USAID ADVANCE II Grant Study Report, April 2019 EXECUTIVE SUMMARY The United States Agency for International Development (USAID) Agricultural Development and Value Chain Enhancement (ADVANCE) project was designed to include a $5 million grant fund. ACDI/VOCA developed the program to cover two broad areas: The Innovation and Investment Incentive (I-3) fund and the Local Partnership Grant (LPG) fund. Of the $5 million, $4 million was allocated to the I-3 fund, which is a flexible financing mechanism to reduce risk associated with investing in new technology and business approaches, foster innovation, leverage resources, and provide incentives to stimulate private sector investment and mitigate constraints in the targeted value chains (VCs) in northern Ghana. The remaining $1 million allocate to the LPG fund enabled the project to engage local NGOs, providers of business development services, trade groups, and other actors to directly provide services to VC actors while building the capacity of local institutions through the grant management process. This study was designed to empirically test the assumption that grants provided incentives for innovation and investment in the value chains promoted by the project. Therefore, the study’s main objective was to assess the extent to which the grants component provided incentives to promote investments and innovation that improve the competitiveness of the project’s commodity value chains. To relate the study’s data and results to the results of the project’s annual surveys conducted to estimate beneficiaries’ yield and gross margins, the study utilized a purposive sampling approach. Thus, the sample was not representative of the variation of grant recipients, rather focusing on recipients of key in-kind grant items such as tractors. The study used a sample
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