Minister for Trade and Agribusiness, Elizabeth Ofosu-Adjare, is spearheading efforts to establish a national policy framework that incentivizes businesses to site factories closer to sources of raw materials, particularly in rural, agriculturally rich regions.
The Minister stressed that such a policy would be a game changer for value addition, rural job creation, and the expansion of Ghana’s industrial base beyond urban centres.
“We need to create incentives for entrepreneurs to set up factories right where the raw materials are produced. That’s how we promote inclusive industrialisation and reduce both production costs and post-harvest losses,” she told Citi Fm’s Bernard Avle in an interview at the sidelines of the Agribusiness Dialogue in Accra.
Boosting Value Chains at the Source
Ofosu-Adjare argued that Ghana’s industrialisation efforts must move beyond centralised factory models and begin to leverage the untapped potential in rural areas. Locating processing facilities at the source of raw materials, she said, would help strengthen agricultural value chains, reduce waste, and increase incomes for farmers.
She cited her ministry’s plans to establish a cashew processing factory in Techiman North as a practical example. Unlike traditional cashew factories that focus on the nut, the proposed plant will process the cashew apple, which is often discarded.
“In Techiman North, we’re putting up a factory specifically to process the cashew apple not the nut. Normally, the apples are left to rot. But once the factory begins operations, farmers can sell both the nut and the apple, doubling their income. That’s real value extension,” she explained.
Driving Rural Economic Transformation
The Minister highlighted the importance of such initiatives in driving rural development. By processing agricultural produce closer to the farm, communities stand to benefit from job creation, reduced transport costs, and increased economic activity.
“Imagine what it means for a farming community when they no longer have to transport their produce hundreds of kilometres for processing. It changes the entire local economy,” she said.
Ofosu-Adjare expressed optimism that with the right incentives such as tax breaks, infrastructure support, and access to credit, private sector players would be encouraged to invest in decentralised processing plants.
Aligning with Broader Industrial Goals
The Minister’s push aligns with Ghana’s broader ambition to transition from an import-driven economy to one focused on production, processing, and export of finished goods. It also complements the Mahama administration’s renewed focus on agribusiness as a key driver of job creation and economic transformation.
“What we’re really aiming for is a policy that makes rural-based processing the norm, not the exception,” she concluded. “That’s how we achieve real, nationwide industrial growth.”
