Fufu flour processing in Ghana: costs, returns and institutional support expected to encourage young entrepreneurs

Abstract

The introduction of "fufu" flour is an innovative business venture that young entrepreneurs should explore. However, the level of costs and returns as well as institutional support to sustain the industry is not well understood. This study was conducted to determine the profitability of "fufu" flour and the strength of the institutional framework. The criteria of Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit-Cost Ratio (B-CR) were used for the investment analysis at 20 per cent discount rate. The results showed that the IRR was 57 per cent, and the NPV and BCR were positive. As the project appraisal indices show worthiness, it can be concluded that "fufu" flour processing is economically feasible. A fairly developed institutional framework already exists (policy, regulatory agencies, and input and output markets); this enabling environment needs to be strengthened.