Association of Eastern Region Rubber Outgrowers (AERRO)
The project involves rubber by AERRO through the National Investment Bank (NIB). The project is located in Kwaebibrim, Atiwa, West Akim, East Akim, Fanteakwa and Suhum-Kraboa-Coaltar districts in the Eastern Region.
The loan will be utilized to establish and maintain 2,200 hectares of rubber plantation. It will involve about 1000 outgrowers producing latex and cup lumps of rubber to the Rubber Plantations Ghana Limited (RPGL) as Technical Operator on contract.
The NIB/OVCF Term Loan shall be repaid by monthly installments adapted to the production cycle of the value chain over a period of Twenty-Two (22) years including eight (8) years moratorium on the principal repayments and interest payments, commencing from the date of first disbursement.
The Interest on the loan from the bank shall be charged at the rate of 16.5% per annum. This rate would be reviewed annually at the beginning of the year, based on the prevailing economic conditions including the Policy Rate of Bank of Ghana.
- RPGL has the technical competence, enough planting materials/stumps and agro-inputs to assist the outgrowers to develop the rubber plantations.
- RPGL shall buy all rubber latex produced by the outgrowers, giving assurance of an already existing market for the produce.
- Adequate strategies have been put in place to sanitize the Land Documentation process.
- The project has a high potential for job creation and poverty reduction in the area. The project will provide direct jobs for 734 farmers under the outgrower scheme. In addition, the plantation project unit will employ staff to manage the outgrower project.
- The project will not discriminate against women in the offering of employment at the plantation. It is anticipated that about 40% of the labour force at the plantation and processing units will be women.
RPGL Nursery for the production of stumps (seedlings) for the outgrowers.
Some young outgrower farms with planting materials from RPGL.
Officials from KfW, NIB, RPGL and OVCF interacting on the field.