Ghana could begin to produce enough rice to feed itself and even export if government takes a more active role in managing the sector, according to a new study by the Institute for Fiscal Studies (IFS), a politically independent non-profit
think-tank devoted to providing economic policy advice, advocacy and world-class training in Ghana and other African countries.
The report, titled “Increasing Importation of Rice in Ghana: Can the Country Transform Its Fortunes in the Rice Sector?”, says the absence of strong government involvement has left Ghana’s rice industry weak, underfunded, and unable to compete with countries like Vietnam and Thailand, both of which have become global rice powerhouses through deliberate state-backed interventions.
Government’s Hands-Off Approach Hurting Farmers
Addressing the media and other stakeholders in Ghana’s rice sector, the IFS led by economist Dr Said Boakye argued that Ghana’s policy of leaving the private sector to drive rice production had failed. He maintained that government’s limited role of “creating an enabling environment” without providing the needed support had led to widespread market failures from poor access to fertilizer and irrigation to low mechanization and limited credit for small farmers.
As a result, Ghana continues to spend hundreds of millions of dollars importing rice each year, even though local farmers have the land and skills to produce enough for domestic consumption.
Call for a Rice Development Board
“To reverse this trend, the IFS is recommending the creation of a Rice Development Board (RDB), a permanent, well-funded public institution that will coordinate all rice-related government interventions, from seed production and fertilizer supply to mechanization, irrigation, and marketing,” Dr Boakye stated.
The proposed board, according to the study, would serve as the central agency through which government channels its direct investments and technical support to the sector. It would work hand-in-hand with private players but ensure that critical needs such as affordable fertilizer, quality seed, and access to modern equipment are met.
For example, the RDB could establish local fertilizer factories to serve rice farmers at affordable prices, while also providing tax breaks and subsidies to private fertilizer producers. It would also be responsible for distributing fertilizers fairly and efficiently through offices in every rice-growing district.
Local Seeds, Local Machines, Local Jobs
The IFS further recommends that the RDB should take the lead in producing and supplying high-yield rice seeds suited to Ghana’s environment, rather than relying heavily on imports. The study also urges government to partner with local firms like Kantanka Automobile to produce rice-farming machinery locally, a move that could create jobs and reduce equipment costs.
The report emphasizes that Ghana’s rice potential can only be fully unlocked if farmers have access to irrigation facilities. It therefore calls on the RDB to collaborate with the Ghana Irrigation Development Authority (GIDA) to develop systems across the country’s 1.9 million hectares of land suitable for rice farming.
Learning from Global Success Stories
Countries such as Vietnam and Thailand, the study notes, have become rice giants not because of luck, but because their governments invested directly in farmers, helping them with technology, credit, research, and access to export markets. Ghana, the IFS says, can do the same if it builds a structure that survives beyond election cycles and changes in government.
A Lifeline for Farmers and Families
For smallholder farmers in places like Tamale, Navrongo, and Hohoe, the establishment of an RDB could be transformative. It would mean access to better seeds, fertilizers, and machines and a ready market for their harvest. For the country as a whole, it could mean lower rice prices, fewer imports, and more jobs in farming, milling, and transportation.
The IFS concludes that if Ghana establishes the Rice Development Board and funds it properly, the country could not only feed itself but also become a major exporter of rice within the next decade, turning what is now a food import bill into a source of national income and pride.
