PI component

This component supports productive inclusion activities for extremely poor households in targeted communities. The implementation of this component is facilitated by the Rural Development Coordinating Unit of the Ministry of Local Government Decentralization and Rural Development with technical support through relevant state actors such as the National Board for Small Scale Industries at the District level. The component consists of two sub-components.

Complementary Livelihood and Asset Support Scheme (CLASS), implemented in 42 districts in the 5 regions of Northern Ghana, increases access to income-generating activities for extremely poor households. CLASS activities include:

  • * Training on life skills and microenterprise
  • * Training on business management and vocational skills
  • * Start-up cash grants;
  • * Microenterprise coaching and mentoring.
CLASS benefits selected LEAP and LIPW household members aged 18 – 65 years who are willing to participate in the program. At least 60 percent of CLASS beneficiaries are female. Beneficiaries are grouped for ease of training, facilitation, and coaching. These groups are instrumental in bargaining for better services and establishing linkages to other services. Individual beneficiaries are encouraged to undertake enterprises in groups but also can participate as individuals. Upon completion of all the required training and the formulation of a plan, beneficiaries are provided with a start-up cash grant to set up their microenterprises. Payments are made through the biometric electronic payment system and each beneficiary receives a maximum of GHS1050. The exact grant amount is dependent on the type of enterprise proposed in an agreed upon plan. Grants are disbursed in tranches.

Linkages to Agricultural Support improves the agricultural productivity of extremely poor households by facilitating linkages to existing agriculture projects. Specifically, this sub-component finances the establishment of a mechanism of referring Labor-Intensive Public Works (LIPW) and Livelihood Empowerment Against Poverty (LEAP) beneficiaries to key Government agricultural projects, such as the Ghana Commercial Agriculture Project (GCAP).  The GCAP aims to improve agricultural productivity and production of both smallholder and nucleus farms in selected project intervention areas. To complement the objective of GCAP, this sub-component finances: (i) provision of information to extremely poor farmers participating in LEAP and LIPW to form farmer-based organizations; (ii) identification of beneficiaries who are interested and able to participate in labor-intensive activities as part of GCAP irrigation development schemes; (iii) engagement of a service provider to coach these beneficiaries in preparation for participating in GCAP activities; and (iv) referral of these beneficiaries.