Vegetable farmers call for long-term investment to boost agricultural exports

THE Vegetable Producers and Exporters Association of Ghana (VEPEAG) is calling for long-term financial support to meet growing export demands as the country continues to rely heavily on imports despite its agricultural potential.

The association said commercial farmers and exporters were struggling to capitalise on market opportunities due to insufficient long-term financing options from institutions such as the Ghana Export-Import Bank (GEXIM).

This call follows the launch of the 2024 Annual Trade Report and the Quarter Four (Q4) Trade Newsletter in Accra last Wednesday by the Ghana Statistical Service (GSS).

Vegetable imports 

According to the report, vegetable imports, particularly from Burkina Faso, saw a significant fluctuation.

“Compared to 2023, there were two changes in the top five import origins within Africa to the country in 2024, with Nigeria and Morocco replacing Togo and Cote d’Ivoire.

Imports from Nigeria amounted to GH¢4.1 billion, while imports from Morocco totalled GH¢2.0 billion. Burkina Faso, which primarily supplied vegetable products in 2023, recorded a decline by more than half in its share of Ghana’s imports, from 89.8% to 40.7% in 2024,” it said.

The report indicated that vegetable products, key imports from Burkina Faso, highlight the need to explore investing in the local production of vegetables. 

Financing gap

In an interview with the Graphic Business, the President of VEPEAG, Dr Felix Mawuli Kamassah, explained that agricultural lending constituted less than 5% of total bank lending in Ghana, with vegetable farming receiving a smaller portion.

He said while GEXIM was established to support export-oriented sectors such as vegetable production, support to the agricultural sector has been inconsistent and insufficient to create transformative change.

“Our members can expand production significantly but lack the capital investment needed for modern farming equipment and infrastructure. With proper financial backing, we could reduce the nation's dependence on imported vegetables and boost export earnings.”

“We want the government to leverage the support of GEXIM, which was set up to aid sectors like agriculture and export. Currently, the bank is not channelling enough resources into these areas. Without capital, we cannot take advantage of opportunities, especially in the export market,” Dr Kamassah added. 

Irrigation

He explained that the lack of functioning irrigation facilities in the country significantly affects yield, leading to increased reliance on vegetable imports from neighbouring countries such as Burkina Faso and Niger.

To revitalise the sector, boost production and create jobs, he urged the government to prioritise investment in mechanisation, irrigation and improved seed varieties.

“As climate change exacerbates weather unpredictability in the region, long-term investments in agricultural technologies, drought-resistant seeds and modern farming techniques are needed to reduce Ghana’s food import dependence and capitalising on export opportunities,” Dr Kamassah added.

Food import 

In 2024 alone, Ghana spent a staggering GH¢38.95 billion on imported food, showing just how much the country relies on foreign markets to meet local demand.

Between 2023 and 2024, the value of food products exported increased by GH¢12.6 billion, while food product imports rose by GH¢12.2 billion.

However, the share of food products declined from 2023 to 2024, with 2.4 percentage points decline for exports and 0.8 percentage points increase for imports.

Cocoa products (62.1%) recorded the highest for exports followed by edible fruits and nuts (11.2%).

Grains, animals or vegetables, fats and oils, cereals, meat, sugar products and fish collectively constitute over half (53.6%) of all food product imports into Ghana, reflecting a significant portion of the country's food imports.

SONA 

Delivering his maiden State of the Nation Address since being elected to office, President John Dramani Mahama, said “Ghana has fertile lands, abundant water and human resources. Yet, we face a paradox. 

Our food import bill continues to soar, reaching alarming levels of over US$2 billion annually. In addition, rising food inflation is burdening households and threatening livelihoods.” 

To address this, he said the government was implementing several well-considered policies to grow the agricultural sector, including agro-processing. 

This, he said, will be backed by a reliable power supply, to meet our country's needs while advancing exports to earn foreign exchange and strengthen our economy.

For instance, he said the Agriculture for Economic Transformation Agenda (AETA) will modernise agriculture, enhance agribusiness, ensure food security, lower food inflation, boost exports and create sustainable jobs.

In addition, he said the Feed Ghana Programme will increase food production and reduce prices through projects like the Grains Development Project, focusing on rice, maize, and soybean production, adding that the Vegetable Development Project will target crops such as tomatoes, onion, and pepper. 

“Our poultry farm-to-table project will eliminate poultry imports and increase local production. Ghana imports 95% of its poultry needs, which costs over US$ 300 million annually. 

To reverse this trend, the government plans to revamp the poultry sector by investing in hatcheries, feed mills, processing and distribution, working toward eliminating poultry imports,” President Mahama said.

To strengthen the connection between agriculture and industry, the President said the government will prioritise value addition, processing and distribution. 

“This will position agriculture as a profitable and appealing activity, making it more attractive to young people,” he added.