Agricultural sector needs adequate, sustainable funding

The importance of agriculture in Ghana's economy cannot be overstated.

As the backbone of the economy, agriculture provides employment for approximately 40 per cent of the population.

Despite its significance, the sector faces numerous challenges, including inadequate budget allocations, limited access to credit and poor infrastructure.

The recent allocation of GH¢1.5 billion (approximately $100 million) to agriculture in the 2025 national budget, representing just 0.54 per cent of total government spending is a clear indication of the neglect of the sector.

The allocation is insufficient to drive national economic transformation to address the sector's pressing challenges.

Furthermore, the agricultural sector is heavily reliant on rain, making it vulnerable to climate change.

The sector's productivity is also hindered by limited access to credit, poor soil fertility and inadequate irrigation systems. 

These challenges have resulted in low agricultural productivity, making it difficult for Ghana to achieve food security and self-sufficiency.

To address these challenges, the government must prioritise investment in agriculture and rural development.

This can be achieved by increasing budget allocations to the sector, providing subsidies to farmers and investing in irrigation systems and other infrastructure.

Additionally, the government must implement policies to promote productivity, such as providing training and extension services to farmers and usage of technology in agriculture.

The private sector also has a critical role to play in supporting the agricultural sector.

Private companies can invest in agricultural infrastructure, provide credit to farmers, and promote the use of technology. 

Agriculture has the potential to drive economic growth and transformation.

However, this potential can only be realised if the government and private sector  invest by increasing budget allocations, providing subsidies to farmers, and investing in infrastructure to promote agricultural productivity to achieve food security and drive economic growth.

The Daily Graphic takes comfort in the government's understanding that the private sector will play a crucial role in driving the agricultural sector forward.

Rather than relying solely on government investment, the private sector is expected to thrive in an enabling environment created by the government.

This approach recognises that the private sector has the expertise and resources to drive innovation and growth in the agricultural sector.

The ambitious plans outlined by the President in the State of the Nation Address cannot be achieved by the government alone, highlighting the need for private sector partnership.

The proposal to establish an AgriFund, similar to the GETFund for education, is a worthy consideration that could guarantee sustained funding for agriculture.

This fund would provide a dedicated source of funding for agricultural development.

To attract investment into the agricultural sector the government must initiate and implement policies that encourage private sector participation.

The 2025 budget's description as a private sector-friendly budget is a positive indication that it will foster an environment conducive to private sector growth.

By streamlining regulations and reducing bureaucratic hurdles, the government can make it easier for private companies to invest in agriculture.

Rather than providing direct funding, the government should focus on injecting incentives to fuel the growth of the sector.

This approach will enable the government to leverage its advantages and give agriculture the necessary boost.

Incentives such as tax breaks, subsidies and investment grants can help to attract private sector investment and encourage innovation in the agricultural sector.

Furthermore, the government should give attention to infrastructure development to support agricultural growth.

This includes investing in irrigation systems, roads and storage facilities to help farmers get their produce to market.

By improving the business environment and providing the necessary infrastructure, the government can help to unlock the potential of the agricultural sector.

Ultimately, the government's role is to create an environment that allows the private sector to drive the economy, rather than engaging in business itself.

By focusing on creating an enabling environment and providing incentives for private sector investment, the government can help to drive growth and innovation in the agricultural sector.

This approach will not only benefit the agricultural sector but also contribute to  the country's overall economic development.