IMANI warns Ghana’s agriculture investment crisis threatens growth, food security

Independent Research and Advocacy Organization IMANI Africa has raised red flags over Ghana’s continued underinvestment in agriculture, revealing that the sector has received less than 2 percent of foreign direct investment (FDI) over a six-year period, from 2018 to 2024.

Drawing on the latest data from the Ghana Investment Promotion Centre (GIPC), the think tank noted that in 2024 alone, agriculture attracted just USD1.5 million out of USD617.6 million in total foreign inflows, representing a mere 0.24 percent. This limited funding supported only three agriculture-related projects nationwide.

In contrast, capital continues to flow into sectors such as oil and gas, manufacturing, and services. IMANI says this pattern is not a one-off but a structural imbalance that has persisted for more than half a decade, undermining agriculture’s potential to drive inclusive growth, job creation, and food security. The situation is mirrored domestically.

According to data from the Bank of Ghana and GIRSAL, agriculture has consistently received less than 5 percent of total bank credit in recent years, far below the levels needed to modernize and scale the sector.

This underinvestment persists despite ongoing policy efforts and public rhetoric positioning agriculture as a pillar of national development. Initiatives like the Planting for Food and Jobs programme and GIRSAL’s credit guarantee scheme were introduced to de-risk the sector and improve financing access, but their impact remains limited. IMANI argues that the mismatch between policy promises and actual financial commitment is stalling transformation within the sector. With over 30 percent of Ghana’s workforce engaged in agriculture and the sector contributing significantly to non-oil export earnings, the think tank says bridging the financing gap is crucial for long-term national development.