Ghana Commits $3 Billion to Commercial Agriculture

The Government of Ghana has announced plans to invest $3 billion in commercial agriculture to enhance domestic food production, reduce imports, expand agro-processing and create employment opportunities. This initiative, announced by Dr. Cassiel Ato Forson, Minister for Finance, aims to focus on eight integrated agricultural industries. These industries include rice, sugar, poultry, maize and soya feed, aquaculture, oil palm, vegetables and cocoa value addition.

Each of the eight agricultural industries will have a dedicated commercial plan, financing structure, production targets, processing capacity, market rules and delivery unit. These industries will operate within a national farm-to-market system that links farmers to secure land and water, improved seeds and breeds, irrigation, mechanisation, extension services, anchor farms and organised outgrowers. The system will also connect production to storage, processing, packaging, transport, institutional purchasing, retail markets and exports.

Dr. Forson stated that agriculture currently contributes about 20 per cent of Ghana's economy, almost 40 per cent of employment and nearly 25 per cent of export earnings. However, the country continues to spend billions of dollars annually importing food and agricultural products that could be produced competitively locally. This import bill weakens the cedi, exposes the economy to external price shocks and denies local communities the benefits of domestic market demand.

The investment aims to harness Ghana's land, water and enterprise to improve food security, lower inflation and increase rural incomes. It will also supply industries with raw materials, expand exports and create employment. Under the rice programme, import licences will be tied to purchases from verified Ghanaian farmers and millers from 2027, with local purchasing requirements increasing as domestic production expands.

The government plans to prohibit commercial rice imports by 2030, supported by increased domestic production, milling, storage, quality assurance and distribution. Ghana will also pursue sugar self-sufficiency by 2030 through locally grown sugarcane, irrigated production zones, nucleus estates, organised outgrowers and commercially viable mills.

In the poultry sector, the government plans to develop the entire value chain, including breeder farms, hatcheries, feed production, veterinary services, processing plants and cold storage facilities. Commercial anchor farms will work with small and medium-sized producers and organised outgrowers. Institutional buyers, retailers and hospitality businesses will enter into multi-year contracts to purchase locally produced chicken.

The broader agricultural investment will support irrigation, mechanisation, storage and processing infrastructure, including the Pwalugu Multipurpose Dam. Dr. Forson stated that the initiative will transform agriculture into a business and agro-processing into an industry, while strengthening food security and creating employment. When Ghana grows more of what it eats, processes more of what it grows and exports more of what it makes, rural prosperity will rise, inflation will become easier to control, and the cedi will face less pressure.

Key points

• The investment will focus on eight integrated agricultural industries.
• The government aims to prohibit commercial rice imports by 2030.
• The initiative will transform agriculture into a business and agro-processing into an industry.