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

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 German-based online data portal – draining Ghana’s already strained foreign exchange and further straggling 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.

These are even though the country has a bubbling young population and a worsening unemployment rate.

The 2021 Population and Housing Census shows that nearly 40 per cent 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 per cent of the youth are unemployed and more than 50 per cent 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 ‘makeshift’ occupation or jobs for these youngsters to make ends meet while hoping to land their dreams jobs to build careers.

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, raise domestic food production and cut down on imports for the economy to breathe.

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

The programme aimed to encourage more Ghanaians into farming while energising traditional farmers to increase production.

To achieve this, the government supported the programme with subsidised farm inputs, access to credit facilities and duty-free importation of agricultural machinery. It also recruited extension officers to support farmers apply good agronomy practices to help increase production.

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

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

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

PFJ

The most recent government intervention to address the food security challenge is the Planting for Food and Jobs initiative. Introduced in 2017, the programme 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 raring also supported to increase livestock production. Phase two was also launched in 2023.

Though a great initiative, reports from farmer-based organisations, civil society groups and non-governmental organisations (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 programmes succeeded as expected.

And if they did succeed, today’s food challenges show that the successes and/or the programmes 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 GHS3 billion have been poured into phase one (between 2017 and 2023). Additional spending was done on phase two in 2023 and 2024.

With the scarce national resources being used to fund these programmes, everything must be done to ensure that we get adequate and sustainable results from such interventions.
Key among these is the need to leave agriculture and professionals and experienced people.

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

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

I list them below in no order:

1. Rice production

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

By increasing investment in irrigation, mechanised 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 per cent of its poultry meat, amounting to a market value of approximately $400 million every year. 

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 soya beans. 

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. Youthful population

With 67 per cent 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 programmes, 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 utilising 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 said in 2023, by investing in irrigation, mechanisation, 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.