Government must strategically intervene in the real sector, particularly agriculture, to accelerate economic growth and create more jobs, the Institute for Fiscal Studies (IFS) has stated.
The economic think tank believes that boosting agricultural productivity will significantly reduce unemployment and enhance overall economic stability.
Economist with the Institute, Dr. Said Boakye stresses the need for expenditure prioritization in favour of critical sectors, especially agriculture.
“Ghana possesses all the natural conditions necessary for a thriving agricultural sector, yet it continues to underperform,” he notes.
The IFS pointed at Ghana’s favourable weather conditions, vast arable land, and abundant labor supply as key factors that could drive a strong agricultural economy.
According to World Bank data, Ghana had 126,037.4 square kilometers of agricultural land as of 2021, positioning the country for large-scale production if land tenure and administration issues are effectively addressed.
Despite its potential, agriculture’s contribution to Ghana’s GDP has been on the decline, falling from 26.9% in 2010 to 22.7% in 2023. Growth in the sector has also slowed, with the rate dropping from 8.5% in 2021 to 4.5% in 2023.
Cocoa production, a key export commodity, contracted by 0.3% in 2023, while the forestry and logging subsector also saw a decline of 5.0% in the same year. The reliance on food imports, including staples like rice, tomatoes, and fruits, has further compounded economic challenges, affecting food security and the exchange rate.
To reverse the trend, the IFS recommends a series of strategic interventions:
Youth Mobilization for Agriculture
The government should facilitate youth involvement in large-scale agricultural production by providing seed capital on credit, ensuring land accessibility, and enforcing repayment measures.
Expansion of Irrigation Systems
To ensure year-round agricultural productivity, irrigation coverage should be significantly increased.
Local Fertilizer Production:
The establishment of fertilizer manufacturing plants would help provide affordable fertilizers to farmers, boosting productivity.
Enhanced Extension Services:
The Institue urged government to strengthen agricultural extension services to support farmers with technical expertise and best practices.
Seed Supply Enhancement:
A dedicated institution should be established to ensure the nationwide supply of high-yielding and disease-resistant seeds.
