AGONA, GHANA — Western Deedew Group Company Limited has started construction on a modern rice processing plant in Agona, Ghana.

The facility will have a warehouse and a modern milling facility, which includes a destoner, combine harvesters and trans planter, among other equipment, Food Business Africa reported.

Western Deedew said it decided to invest in the facility because the area is suitable for rice cultivation with a favorable rainfall pattern.

The government and local authorities are supporting the project, which is expected to improve the welfare of its residents. The government has committed to giving the company a 10% cut in interest rate and to charge no duties on equipment imported for the facility. It will also have a five-year tax holiday once full operations begin.

GCB Bank Limited is providing 2.5 million cedi ($460,000) in funding.

Western Deedew will package three long grain rice varieties with different qualities: Western Deedew Rice (single polished); Ashanti Royal Rice (double polished); and Ghana Perfect Rice (triple polished).

Rice is a major commodity in Ghana with domestic production expected to increase from 456,000 tonnes in 2018 to 1.66 million tonnes by 2023.