How to boost agriculture and cut Ghana’s over $3.5bn food import bill

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Ghana is home to some of the world’s best arable lands, yet it is the country with one of the biggest food import bills.

Food imports cost the country over $3.5 billion in 2023, according to Statista, a Germany-based online data portal—draining Ghana’s already strained foreign exchange and further strangling local farmers.

As a nation, we import almost everything edible—from rice to offal, locally called yemuadie—as local production continues to suffer largely due to limited policy interventions that can stand the test of time.

This is despite the fact that the country has a bubbling young population and a worsening unemployment rate. The 2021 Population and Housing Census showed that nearly 40 percent of Ghanaians are aged 15-35 years, the age bracket considered golden, youthful, energetic, and smart for national development.

Sadly, a 2020 World Bank report shows that 12 percent of the youth are unemployed and more than 50 percent are underemployed.

With many youths idling after fruitless searches for jobs, one would have thought that farming and food production would have become the ‘go-to’ or at least a ‘makeshift’ occupation for these youngsters to make ends meet while hoping to land their dream jobs to build careers.

Unfortunately, this is not the case. As the population increases, Ghana has failed to produce adequate food for its people, creating food insufficiency that is almost a national security challenge—if not for the growing imports.

Past Efforts

This is not a new problem. Since independence, Ghana has struggled to produce enough food for its citizens, resulting in various interventions by previous governments to address the bottlenecks, shore up domestic food production, and cut down on imports for the economy to breathe.

Perhaps, the most popular of them is Colonel (rtd) I.K. Acheampong’s Operation Feed Yourself, launched barely a month after he captured power in 1972.

The program aimed to encourage more Ghanaians into farming while energizing traditional farmers to increase production.

To achieve this, the government supported the program with subsidized farm inputs, access to credit facilities, and duty-free importation of agricultural machinery. It also recruited extension officers to support farmers in applying good agronomic practices to help increase production.

There were also sustained public sensitizations, drawing enthusiasm from Ghanaians for the program and resulting in broad-based participation by the populace.

The results were largely satisfactory, though the gains could not be sustained beyond the Acheampong regime.

Subsequently, various governments embarked on similar programs with similar intentions.

Planting for Food and Jobs

The most recent government intervention to address the food security challenge is the Planting for Food and Jobs initiative. Introduced in 2017, the program was spearheaded by the Ministry of Food and Agriculture and aimed at supporting farmers and other citizens to produce food.

It took different shades, with people interested in rearing livestock also supported to increase production. A phase two was launched in 2023.

Though a great initiative, reports from farmer-based organizations, civil society groups, and non-governmental organizations (NGOs) showed that the PFJ faced several challenges, leading to limited successes.

Indeed, the country’s sustained and worsening food import bill shows that none of these agricultural programs succeeded as expected. And if they did succeed, today’s food challenges show that the successes and/or the programs have not been sustainable.

This is despite the fact that millions, if not billions, of Ghana cedis from state and donor funds have been poured into these interventions.

In the case of the PFJ, for instance, reports showed that almost GHS 3 billion was spent on phase one (between 2017 and 2023). Additional spending was done on phase two in 2023 and 2024.

Tracking the Mistakes

With scarce national resources being used to fund these programs, everything must be done to ensure that we get adequate and sustainable results from such interventions.

This begs the question: what did we get wrong in the previous programs? This is critical given that efforts are underway for the government to intervene in similar ways to help encourage food production and reduce the import bill.

Key among the issues is the need to leave agriculture to professionals and experienced people.

Like all professions, agriculture is a specialized area, requiring one with adequate expertise and experience to succeed in it. Policy interventions and programming must, therefore, be initiated and led by professionals.

The tendency to allow politics to lead the way is dangerous, as has been seen in the recent past.

There are also low-hanging fruits that the country must aim to pluck.

I list them below in no particular order.

1. Rice Production

Rice remains a staple food in Ghana, yet domestic production covers only 40 percent of demand.

By increasing investment in irrigation, mechanized farming, and improved seed varieties, Ghana can significantly boost local rice production.

The National Rice Development Strategy is a step in the right direction, but additional government and private-sector partnerships are needed to enhance processing and reduce post-harvest losses.

2. Poultry Business

Ghana imports nearly 95 percent of its poultry meat, amounting to a market value of approximately $400 million every year.

With the right investment in modern poultry farms, feed production, and processing facilities, local production can be scaled up to meet domestic consumption needs.

Encouraging smallholder poultry farmers and providing them with access to financing and technical training will be crucial.

3. Livestock and Meat Processing

With meat and edible meat offal imports surpassing $210 million in 2023, there is a strong case for expanding the local livestock industry.

Investments in cattle, sheep, and pig farming, along with the development of meat processing plants, will help Ghana reduce its reliance on imported meat.

4. Value-Added Food Processing

Ghana’s food processing industry remains underdeveloped, leading to increased importation of processed foods.

Investing in agro-processing infrastructure can help add value to locally produced crops such as cassava, maize, and soybeans.

Supporting food entrepreneurs through incentives and financing will enable them to produce high-quality, consumer-oriented food products, reducing imports.

5. Irrigation and Water Management

One of the major constraints to increased agricultural productivity in Ghana is the lack of irrigation infrastructure.

With only 11,000 hectares under irrigation, expanding water management projects will enable farmers to produce crops throughout the year.

Implementing modern irrigation techniques such as drip irrigation and solar-powered water pumps can significantly boost agricultural output.

6. Leveraging the Youthful Population

With 67% of Ghana’s population between 15 and 64 years old, there is a large workforce available for agricultural activities.

Encouraging youth participation in agribusiness through training programs, financial support, and modern technology can enhance food production.

Youth-led agritech startups can also contribute by introducing innovative farming solutions.

Conclusion

Ghana has the potential to transform its agricultural sector by utilizing its vast arable lands, water resources, and youthful workforce.

Reducing agricultural imports will not only save foreign exchange but also create jobs and ensure food security.

As the International Trade Administration noted in 2023, by investing in irrigation, mechanization, livestock farming, and agro-processing, Ghana can position itself as a food self-sufficient nation, reducing its reliance on costly imports while boosting economic growth.

The writer is a businessman and philanthropist who founded the collapsed Heritage Bank Limited.