Agriculture accounts for 36 per cent of GDP and is the country’s main source of employment

Agriculture is the largest sector of Ghana’s economy, accounting for around 36 per cent of GDP and 40 per cent of foreign reserves. Modernisation and expansion of agricultural activities are the keys not only to increasing the locally-produced food supply, providing raw materials for industry and building up exports, but also to reducing rural poverty and unemployment.

More than 60 per cent of Ghana’s population are involved in agriculture, but the vast majority are engaged in subsistence farming, relying on the most basic farming methods to feed their families. In addition, the sector is vulnerable to erratic weather conditions that can bring drought and, more recently, devastating floods.

The government is working to increase the production and productivity of high-value cash and food staple crops and to enhance the competitiveness of Ghana’s agricultural products in regional and international markets.

Ernest Debrah, Minister of Agriculture, says: “In order for us to become a powerful exporter, we must start with the internal market.” Farmers are being organised into larger groups, giving them access to loans to acquire modern equipment and to develop commercial farming enterprises.

New technologies are required to promote intensive agriculture, increase productivity, produce better yields and reduce post-harvest losses. Steps are being taken to sort out problems of land ownership, which at present prevents farmers from using their land as security in order to obtain credit.

Ernest Debrah Minister of Agriculture

“Modernisation will lead to larger farm sizes that will require capital to finance,” the minister says. “If we can mechanise the sector, improve irrigation and establish a transparent land holding system, then farming will become more commercially viable and access to credit will become easier.”

Ghana is already one of the world’s leading producers of cocoa and Mr Debrah believes there is much more potential in the crop. “We are doing well in cocoa production, but we can do better,” he says. “We are encouraging farmers to replant their crops. Our interest is not only to produce more cocoa, but also to increase cocoa processing and servicing.”

Government ambitions for the agricultural sector extend beyond cocoa, however, and the focus is on creating a diversified portfolio of agricultural exports. By encouraging investment, Ghana aims to become a world-class exporter of high value fruit and vegetables. “The goal is to become a multi-crop country,” says Mr Debrah.

Production of palm oil, cashew, cotton and rubber is being developed, as are horticulture and floriculture. Ghana ranks among the top six suppliers of horticultural produce to the EU markets. Vegetables and pineapple have been identified as the major exports that can be used to spur growth. An ultra modern fruit terminal has been completed at Tema Port, with cold storage facilities.

With the help of the African development bank, there are also moves to build up the livestock industry, for which the northern region is particularly suitable, and which the minister believes has potential for foreign investment. Ostrich farming is being gradually introduced, and sheep are being brought in from Botswana, as well as cattle from the sub-region.

Financial help is also being provided by the US Millennium Challenge Corporation (MCC). A five-year, $547 million anti-poverty grant, the agency’s largest to date, is aimed at improving the lives of the rural poor by raising farmer incomes through private sector-led, agribusiness development. The largest amount will go towards enhancing the profitability of commercial agriculture among small farmers.