Empirical examination of financial and economic viability of Moringa oleifera production in the Bono East Region, Ghana

Abstract

ABSTRACT This paper aims to assess the financial and economic viability of Moringa oleifera production as well as processing yield using data collected from 75 moringa farmers and a processing firm in the Bono East Region of Ghana. Descriptive statistics, as well as the discounted and non-discounted measures of project worth, were employed as analytical tools. A three-scenario based sensitivity analysis followed this to measure the robustness of the viability indicators to varying parameter values. The results revealed that an investment in Moringa oleifera production has a payback period of 1 year, 10 months, NPV of GH₵ 4,857.46(US$ 833), a BCR of 1.65 and an IRR of 63%, indicating Moringa oleifera production in the Bono East Region is viable. Considering the viability of this plantation and the potential it portrays for sustainable development, income generation, and job creation, we recommend that governments, Non-Governmental Organizations, and donor agencies support, invest, and encourage the cultivation, consumption, and activities of value addition to Moringa oleifera in their programs. This will lead to nutritional security, youth empowerment and liberation of villages and rural communities from intense poverty. It is also recommended that the government includes moringa plantation in its planting for food and jobs programs.