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Business & Economy

Stable Inflation Hinges on Investment in Irrigation and Food Storage — Government Statistician

Ghana’s Government Statistician, Dr. Alhassan Iddrisu, has urged increased investment in irrigation, food storage, and transport infrastructure to stabilise food prices, sustain single-digit inflation, and ensure year-round agricultural productivity.

Despite the Glut, Onions, Yams, Others Make List of Top 20 Inflation Drivers Signaling Supply Chain Issues
Dr. Alhassan Iddrisu, Government Statistician
Stanley Senya
Oct 9, 2025

The Government Statistician, Dr. Alhassan Iddrisu, has underscored the urgent need for sustained investment in irrigation systems, food storage infrastructure, and rural transport networks to consolidate the country’s recent inflation gains and ensure long-term price stability.

Dr. Iddrisu said that while Ghana’s inflation rate had dropped to single digit for the first time in four years, hitting 9.4% in September 2025, down from 11.5% in August, the achievement could be short-lived if underlying supply-side bottlenecks in agriculture are not addressed.

He cautioned that seasonal food price disparities remain a major threat to inflation stability, adding that uneven rainfall patterns, post-harvest losses, and poor logistics continue to distort food prices across regions.

“We should invest in irrigation to smooth out farming seasons, support year-round production, and reduce rainfall-related risks for staples like yam, cassava, rice, and vegetables,” Dr. Iddrisu noted.

“Some crops are seeing very low inflation rates, while others are spiking. That imbalance shows the structural weakness in our food system,” he added.

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The Statistician emphasised that improved cold chain and dry storage systems are critical to preventing food spoilage and stabilising market supply during lean seasons. 

He also pointed out that rural transport inefficiencies limit farmers’ access to urban markets, leading to artificial price hikes.

“Food storage has been a long-standing issue. We need to strengthen both cold and dry storage facilities and build a reliable transport network to connect farmers to markets,” he said.

Economists have long argued that food inflation, driven largely by weather-dependent agricultural cycles, accounts for a significant portion of Ghana’s overall inflation. With food prices easing in recent months, the Ghana Statistical Service (GSS) attributes the improvement partly to better supply flows and favourable harvests.

However, Dr. Iddrisu warned that without targeted investment in irrigation and logistics, Ghana risks a reversal of its inflation progress when the dry season begins.

He called for stronger collaboration between the Ministry of Food and Agriculture, the private sector, and development partners to scale up infrastructure that supports consistent food production and distribution.

The recent decline in inflation marks a nine-month consecutive drop, signalling improved monetary discipline and easing cost pressures on households and businesses. 

Yet analysts believe structural reforms in the agriculture value chain will determine whether Ghana can maintain stable prices and sustain economic growth.

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