Effectiveness of foreign aid in agricultural development in the Adaklu District of Ghana: a case study of the Modernizing Agriculture in Ghana (MAG) Fund

The debate on the effectiveness foreign aid in Africa continues to take center stage in the development literature. To contribute to this debate, this research sought to investigate the effectiveness of the Modernizing of Agriculture in Ghana (MAG) Fund, a 135 million Canadian dollar foreign aid received by the Government of Ghana for agricultural development. Thestudy employed the qualitative research approach in assessing the utilization effectiveness of the Fund in the Adaklu District of the Republic of Ghana. The researchers purposively selected sixteen (16) informants from the study population and interviewed, using an interview guide. The informants selected for the study consist of technical staff of the Ministry of Food and Agriculture, key staff of the Department of Agriculture of the Adaklu District, core staff of the Adaklu District Assembly, and farmers. The study revealed poor and ineffective utilization of the Fund resulting from cumbersome bureaucratic processes in accessing the Fund, weak institutional collaboration and partnerships, inadequate resource allocation by the Assembly to the Department of Agriculture for Agricultural Development in the district. Consequently, agricultural development in the District is characterized by poor agriculture extension service delivery, poor technological deployment, high cost of inputs and low agricultural production. The study recommends strengthening the institutional and personal capacities of those in charge of the utilization of foreign aid to ensure that funds are applied for their intended purposes. Additionally, the institutionalization of effective monitoring and evaluation mechanisms to track the progress of fund to ensure that they meet their objectives is recommended.