INTRODUCTION – The Rice Sector

Rice is Sierra Leone’s staple food, constituting approximately 75% of the agricultural contribution to the country’s GDP. With an annual per capita rice consumption of 131kg, one of the highest in West Africa, and a population of 8.421 million (2021 Mid-Term Population and Housing Census), the yearly rice consumption requirement is estimated at 530,000 metric tons. Cultivated in diverse ecologies, including upland, Inland Valley Swamps, Bolilands, Mangrove Swamps, and Riverine Grasslands, Sierra Leone’s national rice production in 2022 reached 1,260,000 metric tons of paddy (FAO GIEWS Country Brief, November 2022), equivalent to 400,000 metric tons of milled rice.

This results in an estimated annual import requirement of 130,000 metric tons valued at US$80,600,000 (US$620 per metric ton as of end September 2023). Some other official statistics have put rice imports at a value of US$$100 million. Despite having 5.4 million hectares of arable land, with over 1 million hectares suitable for rice cultivation, the sector faces challenges such as diseases, pests, low soil fertility, the use of low-yielding local varieties, poor extension services, and various socio-economic factors limiting farmers’ productivity.

ISSUE – Challenges and Previous Efforts

Sierra Leone’s rice production is predominantly in the hands of smallholder farmers who struggle to produce enough for home consumption, let alone for commercial purposes. In 2004/2005 cropping season, 56 percent of the households cultivated less than 1 ha of farmland while only 44 percent cultivated 1 ha and more (NRDS – December 2022). The smallholder farmers, generally resource poor, utilize basic tools such as hoes, axes and cutlasses as major farm implement for rice production while labour is mainly provided by family members, thereby severely limiting their scale of production. Challenges include the widespread use of unimproved seed varieties, limited fertilizer use, low farmer-extension ratios, and suboptimal agronomic and cultural practices, resulting in low rice yields ranging from 1.0 mt/ha to 2.6 mt/ha. Despite ambitious rice production programs in collaboration with development agencies over the years, Sierra Leone remains a net rice importer. Quality issues persist in processing and marketing, affecting customer satisfaction regarding different rice grades and palatability.

ACTION – The Role of SCADeP

Component A of the SCADeP aims to strengthen the linkages between producers and agribusinesses by promoting two (2) funding models – the out-grower and aggregation schemes – making competitive finance available to both producers and agribusinesses involved in key agricultural value chains. A total of forty-three (43) rice businesses have benefitted from project support of which 6 are SLADF beneficiaries and 37 are ASMG groups. The Sierra Leone Agribusiness Development Fund (SLADF) offers competitive value chain financing, co-funded on a 50-50 basis with agribusiness contributions, to provide productivity-enhancing services and market access to smallholder farmers. On the other hand, the Agribusiness Services Matching Grant (ASMG) scheme provides small scale post-harvest infrastructure, equipment and value chain development opportunities to smallholder farmers organized into producer organizations and SMEs and operating as aggregators.

Under the SLADF out-grower model, the project built the capacity of 6 agribusinesses to provide essential resources or inputs such as improved seeds, fertilizer, herbicides, pesticides, and extension advisory services to smallholder farmers. This helps smallholders achieve high productivity and product quality, with the agribusinesses also offering a market for the out-growers’ produce. The ASMG funding, comprising 37 rice grantees, received infrastructure, with aggregation centers having a holding capacity of 1,480 metric tons at a time. Additionally, the rice milling machines, each with an installed capacity of 2 metric tons per hour supplied to rice value chain grantees have significantly increased  the rice processing capacity (value addition) within these communities, hence providing opportunities for increased market linkages. The project’s technical assistance to all the grantees covered record keeping, data for decision making, access to finance, growth strategies and business compliance and the rule of law, propelling SCADeP’s achievement in enhanced productivity, innovation, and market reach.

Through the capacity building support to state and non-state actors by the project, agribusinesses, producer organizations, and SMEs have benefited from the provision of services relevant to smallholder commercialization. For example, the Sierra Leone Chamber of Agribusiness Development (SLeCAD) in collaboration with Sierra Leone Standards Bureau (SLSB) trained grantees on good hygiene practices and food safety standards.

In terms of investment analysis, the project invested an approximate amount of US$5 million on all the 43 rice grantees in addition to their own contribution which is a requirement of accessing project grant is estimated around US$4 million, making a total investment of US$9 million. In addition, the project also facilitated these grantees to leverage private capital to expand their out-grower schemes and to further streamline business operations.

IMPACT – What has changed?

With SCADeP funding, several key performance indicators have been monitored over time to determine the progress and financial health of the rice grantees.

Productivity increases due to the introduction of climate smart and yield enhancing technologies and extension advisory services. The chart below shows progression in yield data for rice grantees.

 

Area under improved planting materials – increase in production volumes has a direct relationship with an increase in the area under cultivation. From 2017 to 2023, rice grantees have cultivated a total area of 28,551 hectares. This means that grantees can now access enough raw materials to keep their processing machines more effective and efficient. In terms of production volumes, the project has contributed about 8% of the national requirements of the country’s staple.

Increase in the number of out-growers – the grantees have reported increased capacity to deal with more smallholder farmers. Approximately, 15,000 farmers now have a formal business relationship with Agribusinesses, Producer Organizations and SMEs and have sold up to 80,000 metric tons of paddy to these businesses for value addition and marketing.

In terms of value addition, Mountain Lion Agriculture, one of the biggest agribusinesses supported by the project under the rice value chain have the largest processing capacity in the country and producing high quality branded and packaged rice in sacks of 5kg, 10kg, 25kg and 50kg sold to the public and contributing to the school feeding program currently undertaken by the Government of Sierra Leone. In addition, the company is using rice husks to generate green energy that powers its mechanical parboiler and drying unit. The advantages of using rice husk over conventional source of thermal energy are that rice husk residue is renewable, readily available at a lower cost and can be used successfully by burning in boilers with an efficiency of 99%. Rice residues are also used as green manure to the out-growers to increase production and productivity.

On the enhanced capacity of businesses, grantees have recorded improvements in operations such as data management, compliance with legal obligations such as payment of taxes, adherence to contract terms with off-takers and capacity to access finance from private institutions. Overall, the grantees have reported an increase in revenue and profit from rice sales.

In terms of job creation, the 43 rice grantees have created up to 1,000 jobs of mostly youth and women who contribute significantly to the successes of these businesses. In addition, the smallholder farmers participating in the activities of the businesses have also realized improvement in farm incomes and food and nutrition security.

CONCLUSION – The Big Picture

Despite the challenges confronting Sierra Leone’s rice sector, significant opportunities exist to streamline operations and attain rice self-sufficiency. The SCADeP approach, facilitated through the SLADF and ASMG funding windows, has yielded promising results in enhancing the rice value chain. By promoting out-grower schemes and enhancing the capacity of agribusinesses under the SLADF, SCADeP has spurred improvements in productivity, cultivated area, production volumes, marketed volumes, smallholder farmers’ incomes, employment opportunities, and business profitability. Similarly, the ASMG funding window, focusing on small-scale post- harvest infrastructure and equipment to producer organizations and SMEs, has amplified produce aggregation and processing capacity. The provision of technical assistance has further ensured the businesses’ readiness for investment. Overall, SCADeP contribution to the national requirement of the country’s staple is estimated around 8%, underscoring its pivotal role in bolstering food security. Given these positive outcomes, replicating this investment model across more agribusinesses is recommended to further enhance the rice value chain in Sierra Leone.