How to Boost Agriculture and Reduce Ghana’s $3.5 Billion Food Import Bill

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How to Boost Agriculture and Reduce Ghana’s $3.5 Billion Food Import Bill

Ghana boasts some of the world’s most fertile lands, yet it struggles with one of the highest food import bills. In 2023 alone, the country spent over $3.5 billion on food imports, according to Statista, a German-based online data portal. This heavy reliance on imports continues to strain Ghana’s foreign exchange reserves while undermining local farmers.

Despite having a young and energetic population, Ghana remains largely dependent on imported food. The 2021 Population and Housing Census revealed that nearly 40% of Ghanaians are aged 15 to 35 years—a critical workforce for national development. However, a 2020 World Bank report highlighted that 12% of Ghanaian youth are unemployed, with more than 50% underemployed.

One would expect that agriculture would serve as a natural avenue for employment, providing opportunities for youth to engage in farming and agribusiness. Unfortunately, that has not been the case. Ghana continues to produce insufficient food to meet its growing population’s needs, making food security a pressing national challenge.

Past Efforts to Improve Agriculture

Ghana’s struggle to achieve food self-sufficiency is not new. Since independence, successive governments have attempted to boost local food production and reduce imports through various initiatives.

One of the most notable efforts was Operation Feed Yourself, launched by Colonel (rtd) I.K. Acheampong in 1972. The program aimed to encourage Ghanaians to engage in farming by providing subsidized farm inputs, credit facilities, and duty-free importation of agricultural machinery. The initiative saw widespread participation and yielded positive results. However, the progress was short-lived after the Acheampong regime ended.

In recent years, the government launched the Planting for Food and Jobs (PFJ) initiative in 2017, aimed at supporting farmers and increasing food production. The program included crop farming, livestock rearing, and mechanization support. A second phase was introduced in 2023 to scale up efforts.

While PFJ was a commendable initiative, reports from farmer-based organizations, civil society groups, and NGOs indicate that it faced significant challenges, limiting its impact. Despite investing nearly GHS 3 billion in the first phase between 2017 and 2023, Ghana’s food import bill remains alarmingly high, suggesting that these programs have not been sustainable or effective in the long term.

What Went Wrong?

With scarce national resources being allocated to agricultural programs, it is crucial to assess why previous initiatives have fallen short. Moving forward, Ghana must:

Prioritize expertise over politics: Agriculture is a specialized field that requires professional leadership. Policies and interventions should be led by experienced professionals rather than political appointees.
Identify and invest in key sectors: There are low-hanging fruits Ghana can focus on to boost local food production and reduce imports.

Key Areas for Agricultural Transformation

Rice Production
Rice is a staple food in Ghana, yet local production meets only 40% of demand. Expanding irrigation systems, mechanized farming, and improved seed varieties can significantly increase local rice production. While the National Rice Development Strategy is a step in the right direction, additional government and private-sector partnerships are needed to enhance processing capacity and reduce post-harvest losses.
Poultry Industry
Ghana imports nearly 95% of its poultry meat, costing the economy approximately $400 million annually. Investing in modern poultry farms, local feed production, and processing facilities can reduce reliance on imports. Providing smallholder poultry farmers with financing and technical training will also help strengthen domestic production.
Livestock and Meat Processing
Meat and edible meat offal imports surpassed $210 million in 2023. Expanding cattle, sheep, and pig farming while developing modern meat processing plants will enable Ghana to produce more meat locally.
Agro-Processing and Value Addition
Ghana’s food processing industry is underdeveloped, leading to an increased importation of processed foods. Investing in agro-processing infrastructure can help add value to local crops such as cassava, maize, and soybeans. Providing financial incentives to food entrepreneurs will enable them to produce high-quality, consumer-oriented products, reducing imports.
Irrigation and Water Management
One of the biggest constraints on Ghana’s agricultural productivity is the lack of irrigation infrastructure. Currently, only 11,000 hectares of farmland are irrigated. Expanding modern irrigation techniques—such as drip irrigation and solar-powered water pumps—will allow farmers to cultivate crops all year round.
Leveraging Ghana’s Youth for Agribusiness
With 67% of Ghana’s population aged between 15 and 64 years, there is a large workforce available for agriculture. Encouraging youth participation in agribusiness through training programs, financing, and technology-driven solutions can increase food production. Youth-led agritech startups can introduce innovative farming solutions, improving productivity and efficiency.

Conclusion

Ghana has enormous potential to transform its agricultural sector by harnessing its fertile lands, abundant water resources, and youthful population. Reducing food imports will not only preserve foreign exchange but also create jobs, enhance food security, and drive economic growth.

As highlighted by the International Trade Administration in 2023, investing in irrigation, mechanization, livestock farming, and agro-processing can position Ghana as a self-sufficient food-producing nation, reducing its dependence on costly imports.

It is time for bold and strategic action to prioritize agriculture as the backbone of Ghana’s economy.