Agriculture: The Gateway to Resetting Ghana’s Economy

By Moses Oblitey Djanie

For the longest time, agriculture has been the backbone of GDP in Ghana, providing jobs, export revenue, and food security. The Ghanaian agricultural sector includes crops, cocoa, livestock and forestry and logging, and fishing. The sector is predominantly subsistence and virtually all about crops. In 2021, the agriculture sector contributed approximately GHS 90 billion to the economy, representing 21% of total economic output. The sector supports about 33% of the active labor force and comprises about 83% of rural households.

Despite its pivotal role, the sector has faced challenges such as low productivity, limited access to finance, inadequate infrastructure, illegal mining “galamsey” and climate change. For instance, by reaching levels far below those in earlier years, cocoa-the country’s major forex earners from 2020-2024- witnessed a remarkable drop in productivity due mainly to human activities, such as illegal mining (galamsey). Cocoa output fell to an estimated 429,323 metric tons by the end of June 2024, which comes to less than 55% of the average seasonal yield. Other reasons include varying climatic conditions, disease incidences, and encroachment of illegal mining activities on the arable land. With these illegal mining operations encroaching onto farm lands, farms have been destroyed, and vital waters for agricultural use have been polluted. In 2022, an estimated 19,000 hectares of cocoa farmlands were destroyed by illegal mining. These developments put Ghana’s agricultural output at a sustainable level, with far-reaching effects on the nation’s economy and food security. Again, productivity is below potential due to reliance on traditional farming methods, low mechanization, and limited access to modern agricultural inputs.

However, with strategic investment and innovative policies, agriculture has the potential to reset Ghana’s economy and accelerate sustainable growth.

Agriculture as a Driver of Economic Transformation

1. Industrialization Through Agro-Processing: A strong agricultural base can drive industrial growth. By promoting agro-processing industries, Ghana can add value to its raw materials, such as cocoa and cashew nuts, thereby creating jobs and boosting export revenues. This aligns with the government’s One District, One Factory (1D1F) initiative. The One District, One Factory (1D1F) initiative will help reduce post-harvest losses, enhances export potential, and increases farmers’ incomes. This can be done by linking farmers to markets and industrial supply chains which will help overcome industrial losses.
2. Export Diversification: Over-reliance on cocoa as the primary agricultural export leaves Ghana vulnerable to price fluctuations on international markets. Expanding the export base to include other crops such as mangoes, avocados, cassavas and yams will enhance resilience and generate foreign exchange. As of 2022, Ghana produced approximately 25.6 million metric tons of cassava, positioning it as the third-largest producer in Africa, following Nigeria and the Democratic Republic of the Congo (statista.com). Globally, data from 2018 indicates that Ghana was the fourth-largest producer worldwide, with a production volume of 20.8 million metric tons.  In terms of export value, Ghana exported $2.33 million worth of cassava in 2022, making it the 39th largest exporter globally. Does it mean we consume the remaining value, WHERE DOES IT GO?
3. Employment: Agriculture provides jobs for the majority of Ghana’s population, especially in rural areas. Modernizing and expanding the sector could create additional employment opportunities, reducing poverty and inequality. The government’s focus on programs like Planting for Food and Jobs, Feed Ghana, Agriculture for Economic Transformation Agenda (AETA), Poultry Farm to Table project among other demonstrates the sector’s ability to absorb labor while enhancing food security.
4. Technology and Innovation: Leveraging technology, such as precision farming, drone technology, and mobile platforms for market access, can significantly improve yields and reduce post-harvest losses. Initiatives such as the E-Agriculture Platform demonstrate the potential of digital tools in transforming the sector.
5. Climate-Smart Agriculture: Addressing climate change challenges is essential to sustaining agricultural growth. Adopting climate-smart practices, such as drought-resistant crops, water-efficient irrigation systems, and reforestation, will safeguard productivity and ensure long-term sustainability.

Policy and Investment Needs

To realize agriculture’s potential, Ghana must address critical challenges:

• Access to Finance: Farmers need affordable credit to invest in modern farming techniques. Strengthening agricultural finance programs and leveraging private-sector investment will be critical.
• Infrastructure Development: Improved roads, storage facilities, and irrigation systems are essential for reducing post-harvest losses and increasing market access. Developing infrastructure in Ghana ensures efficient channels for transporting agricultural produce from farms to markets and processing facilities, while also facilitating the import of necessary farming inputs. Improved road networks connect rural farming communities to urban markets, reducing delays and post-harvest losses. Efficient storage and logistics systems further enhance the flow of goods, ensuring timely delivery and preserving produce quality.
• Capacity Building: Training farmers on modern techniques and sustainable practices will boost productivity. Training programs can focus on areas such as precision farming, use of improved seeds, effective irrigation systems, and pest management strategies. For example, initiatives like the “ Agriculture for Economic Transformation Agenda (AETA)” program can incorporate training components to empower farmers with modern practices. Additionally, building the capacity of farmers ensures they can adapt to challenges like climate change, reduce post-harvest losses, and maximize yields. By investing in farmer education and extension services, Ghana can enhance food security, improve rural livelihoods, and position agriculture as a driver of economic transformation.
• Research and Development: Investment in agricultural research can drive innovation in crop varieties, pest control, and soil management. Grants for agricultural research in Ghana can provide critical funding for developing innovative solutions, such as drought-resistant crop varieties, eco-friendly pest control methods, and advanced soil management techniques. Institutions like the Council for Scientific and Industrial Research (CSIR) and partnerships with international organizations can channel resources to support impactful research. By prioritizing such grants, Ghana can enhance productivity, address climate challenges, and strengthen its agricultural sector.

Ghana will always have Agriculture as its way to reset its economy. By proffering solutions for the structural bottlenecks to maximize its potential, Ghana should witness inclusive growth, poverty reduction, and economic diversification. Thus, a revived agricultural sector will lead to economic recovery and indeed with a credible voice for sustainable development in Africa and the Ghana that we want.