Ghana and Canada on Monday signed two Memoranda of Understanding for a 4.5m Canadian-dollar grant to improve on the agriculture sector.

The two agreements signed in Accra by Dr Gheysika Agambilla, Deputy Minister of Finance and Mrs Marlene Jennings, Parliamentary Secretary to the Canadian Minister for International Co-operation, comprised a three million-dollar for the implementation of a five-year technical assistance project to reduce food insecurity and land degradation.

The second project is a $1.5m grant to be released by the Canadian International Development Agency (CIDA) to support the Agriculture Sector Structural Improvement Programme (ASSIP) to improve on the capacity of farmer-based organisations and the promotion of self-reliance programmes among other benefits.

Dr Agambilla said the two agreements, witnessed by the Canadian High Commissioner in Ghana, Jean-Pierre Bolduc, marked another milestone in their bilateral relations.

“The implementation of the projects would further enhance government's effort at building capacity at the local level through the provision of training.” Over the years, Canada has provided Ghana with significant resources and taken interest in the Multi-Donor Budget Support programme through which quick-disbursing funds will be provided to support the budget," he said.

Mrs Jennings announced another development package of $16.5m to complement the CIDA assisted project, an additional $32m agriculture investment fund and a $5m budget aid to Ghana.

She said such interventions were in response to the progress Ghana had made in the area of good governance, democracy that are some of the cardinal principles under the New Partnership for African Development (NEPAD).

Mrs Jennings announcement attracted the commendation of Dr Agambilla who described it as "a big surprise" in addition to the grant. "You can't ask for more than a grant," he said with a smile.