| Summary: | The reclamation of post-mined land commissioned under the Inclusive Landscape Management Plan (ILMP) by the International Water Management Institute (IWMI) is a strategically important initiative to convert degraded mining landscapes into productive agricultural land. The approach combines oil palm cultivation with carefully selected leguminous crops to restore soil fertility and deliver sustainable socio-economic and environmental outcomes—the triple bottom line. Building on a successful pilot in the Ahafo Ano Southwest District, the initiative was initially framed through an Investment Memorandum (IM) as a scalable, investor-ready opportunity. The original model proposed private investment to finance the high-risk reclamation phase in return for long-term land access, supported by a 70:30 profit-sharing arrangement favoring investors while ensuring meaningful benefits for local communities.
Subsequent expert analysis and stakeholder validation, however, reveal a critical structural constraint requiring a fundamental strategic shift. Updated estimates indicate that reclaiming the full 13,391 hectares would cost approximately US$441.92 million—far exceeding the projected US$40.44 million required for downstream agro-industrial operations. This imbalance fundamentally alters the project’s investment profile, rendering it unsuitable for conventional private financing. As a result, the original incentive structure is no longer viable.
To unlock future investment, the initiative must be reframed as a blended development model, with the non-commercial reclamation costs financed by public or donor sources. This approach would de-risk the agro-industrial phase and restore the project’s attractiveness to private investors.
|
|---|