The Governor of the Bank of Ghana, Dr. Ernest Addison, has announced that Ghana is on track to become a significant food exporter, driven by the country’s robust agricultural sector.
During the 5th-anniversary celebration of the Ghana Incentive-Based Risk Sharing System for Agricultural Lending (GIRSAL), Dr. Addison emphasized the vital role agriculture plays in the nation’s economy, particularly in terms of employment and food security.
He noted that, food items constitute 43.7% of Ghana’s consumer basket, underscoring the sector’s importance to the country’s food security.
Dr. Addison also highlighted the need to reduce Ghana’s dependency on food imports, which currently make up about 10% of total imports and are valued at $1.5 billion.
Reducing these imports, he stated that, it would help preserve the nation’s foreign exchange reserves.
Furthermore, Dr. Addison pointed out the potential for export-oriented agriculture to significantly enhance Ghana’s foreign exchange earnings, establishing the country as a key player in the global food market.
“Agricultural financing is a crucial component of Ghana’s development strategy due to the sector’s significant role in the economy, particularly in employment and food security. From a macroeconomic perspective, agriculture contributes about 24% of GDP and employs an estimated 40% of the workforce.”
“Development within the agricultural sector is critical for the economy, given the weight of food items in the consumer basket, which accounts for 43.7%, making it a major driver of headline inflation in this country.”
“It’s also important to note that, on average, food imports account for nearly 10% of total imports, amounting to about $1.5 billion in import values.”
“The agricultural sector holds great potential to boost our country’s foreign exchange reserves. Firstly, as an import substitution strategy, increasing local food production can significantly reduce the food import bill and protect our foreign exchange reserves. Secondly, through an export promotion strategy, Ghana could emerge as a major food exporter, thereby improving the sector’s foreign exchange earnings.”
Source: Adomonline
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