One attempt, multiple solutions: How agriculture can boost Ghana’s economy
Covering a land size of over 238,000 km² with a little over 30 million population. Ghana is described as having a youthful population (with the medium age of 21 years) while the main driver of the economy can be found in the primary sector of production (i.e. drilling, mining, agriculture). The World Bank pegs Ghana’s economy size at USD 77.59 billion with agriculture contributing 20% of Gross Domestic Product (GDP) in 2019.
Agriculture plays a crucial role in contributing to the socio-economic development in many countries. It serves as a primary source of employment, livelihood and food security. Research-based studies on the subject has found out that either agriculture affects the growth of any given economy positively, negatively or no evidence at all.
In Ghana, however, the agriculture sector has been identified as a significant factor to economic growth. similar studies on agriculture and its sub-sectors, unfortunately suggest that Ghana’s agriculture potential is not being exploited as expected. With an economy described as agrarian, the country has the capacity to produce beyond its current figures. Already, nearly half of Ghana’s food produce are lost to wastage. Data from the Chamber of Agribusiness Ghana (CAG) indicates that the country’s food importation bill is in excess of USD 5billion per annum. Meanwhile an amount of USD 52 million is budgeted to be spent on the agriculture sector which represent only 1.13 percent in the 2023 budget. This woefully falls short of the Malabo Declaration (which Ghana is a signatory), which suggests that at least 10% of national budget should be invested in agriculture.
This article gives a brief on how agriculture can be used to boost Ghana’s economy.
Agriculture is the art, science and technology of producing food, fibre and food products from plants and livestock. It also encompasses a wide range of activities such as cultivation, collection and harvesting of crops, animal husbandry, plant breeding, plant protection and pest control, agrochemicals, soil and water conservation. It also includes marketing, financial and legal services, food processing, grain storage and transportation, agroforestry and agro ecology, and also public policy related to food, farming and agribusiness.
There are a variety of contributing factors to agriculture in Ghana. These factors can be grouped into three primary categories: infrastructure, climate, and resource availability. Infrastructure includes roads and irrigation systems. A favourable climate is necessary for growing a variety of crops, and the availability of resources, such as fertilizer and pesticides, can help increase yields for farmers. Additionally, innovations in technology and access to finance are all resources needed to improve the yield and benefits of agriculture.
Ghana's economy can be significantly boosted through the use of agriculture. Agricultural development can create jobs, wealth and help diversify the economy. Agriculture can also lead to increased production and yields of food, such as grains, legumes and vegetables, which can both help feed the country's citizens and also open up lucrative export markets. The government can support agriculture by providing access to credit, encouraging better irrigation and agricultural technologies, and offering incentives to local farmers. They can also offer educational programs to teach people the basics of modern agricultural practices. By investing in agriculture, Ghana can look forward to a brighter, more prosperous future.
First of all, these developments must be informed or driven by research (science and data). The land size and area to be cultivated should be proportionate to firstly, making the nation self-reliant in consumption, taking into consideration future demands and occurrences. The acreage, type of plant and volume of calories to be consumed locally should be mathematically calculated and cultivated in order to reach the domestic self-reliance goal.
The global market outlook becomes the next thing to tackle by knowing or mapping where such products can be exported to, the volumes needed (thus the market availability and size) and the necessary expansion needed to meet global demand viz-à-viz what the economy can support in terms of procuring farm tools, implements and machinery. The expansion of farms beyond subsistent reasons to commercial ones comes with the decision or opportunities of adding value to the surplus before export. This becomes the raw material to drive the engine of growth of national industrialisation.
Research and innovation is key since modern agriculture is driven by science and technology other than the erstwhile rain-fed-simple-farm-tools agriculture. This paradigm shift will also enhance the training of extension officers, accelerate the growth and expansion or development of the few agriculture colleges in the country. In effect we will see more qualified veterinary officers, agronomist; the expansion and strengthening of the staff and faculties in animal husbandry, plant and soil sciences and other agriculture related areas in Ghanaian universities.
Ghana must invest more into agribusiness. ‘Agricultural businesses encompasses a wide range of activities such as trading, processing, marketing, research, packaging and distribution of agricultural products, as well as financing and tractor manufacturing. This sector comprises of a number of players including farmers, cooperative organizations, private companies, government institutions, and associations. Agribusiness brings out the full value chain of agriculture.
Most importantly, strategically, agriculture should be seen as a human security tool. It should strongly feature in the already people-centred National Security Strategy of Ghana for combating the Climate Crisis –which has been described by the United Nations as “the existential threat of the 21st Century”. It will also offer the country a multiple solution in fighting famine, hunger, diseases, poverty, illiteracy, unemployment, net migration among others. Agriculture should be imbibed in the young Ghanaian from school (if possible, every Senior High School should find innovative ways to farm and feed itself). There should be a nationally deliberate and concerted effort to make agriculture the centrepiece of nation building and development.
If Ghana's agricultural sector is developed to its full potential, the nation would be able to reap a variety of benefits. These include improving food security, enhancing economic opportunities for farmers, reducing poverty and hunger, increasing markets for agricultural products, improving nutrition, and increasing exports. Additionally, by increasing agriculture production, Ghana would be able to reduce its reliance on imports and foreign aid and boost its financial standing on the global plane. Consequently, the development of agriculture in Ghana would have an indisputable positive effect on its people, its economy and its overall standing in the international community. The country could experience an increase in jobs, yields and profitability within the industry, allowing it to become a major food producer and exporter. Additionally, this could lead to improvements in nutrition and wellbeing, poverty reduction and an improved standard of living for rural communities across the country.
In his bestseller titled Guns, Germs and Steel, Jared Diamond posited the tried and tested principle “We eat in order to build”. Nations have risen from the dust of economic stagnation by adopting and practising agricultural expansionism methods. Ghana can do same through a conscious and concerted effort by changing the look and the mind set of her citizens about agriculture. Research, innovation and technology; expanding knowledge and faculties; adding value, developing agribusiness to obtain the full dividends within the value chain are the surest bet.
As it stands almost all of Ghana’s primary produce are sold on the international market (exported) without value addition. The agricultural potential is underdeveloped with technology and innovation largely non-existent in a lot of areas. It can therefore be concluded
that there are a lot of opportunities for Ghana to use agriculture to boost her economic growth. This makes the points raised in this article priceless and destiny changing for Ghana’s economy.
Joshua Kudzo-Norsah
goodynorsah@gmail.com
+233249303337
Author has 4 publications here on modernghana.com
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