Reforms in Ghana’s Agriculture Sector Essential for Economic Recovery

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Mongolia Pastoralist
livestock

Efforts to revitalize Ghana’s economy must focus on addressing critical weaknesses in the agriculture sector, particularly in the livestock sub-sector, which is poised to drive significant growth and job creation.

With the country spending substantial amounts on imported meat and livestock, experts believe that improving local production could offer a solution to reduce reliance on imports and support sustainable economic recovery.

In 2023, Ghana imported US$210.13 million worth of meat and edible meat offal, according to data from the United Nations COMTRADE database. Additionally, livestock imports from neighbouring countries amounted to US$17.7 million. The Ashaiman-Tulaku Cattle Market in the Kpone-Katamanso Municipality, which receives 30 to 40 trucks of cattle daily, serves as a prime example of the sector’s untapped potential. It is estimated that about 8,400 cattle flow through the market each week, alongside goats and sheep, creating significant opportunities for job creation.

Livestock imports from Burkina Faso, Niger, and Nigeria accounted for 70% of Ghana’s supply in 2023, while the livestock sector contributed GH₵4.9 billion to the country’s GDP in 2022, representing 13% of agriculture’s total contribution to the economy. However, there remains a glaring gap between demand and local production, with only 5% of Ghana’s estimated 300,000 metric tonnes of poultry consumption being met by domestic producers. This dependency on imports from countries like the Netherlands, Brazil, and the USA costs Ghana nearly US$400 million annually. The country also spends an additional US$1.2 billion on imported packaged and processed meat products.

To address these challenges, President John Dramani Mahama has pledged support for local industries through his proposed “24-hour economy” policy, with a particular emphasis on boosting livestock production. In his inaugural speech, Mahama highlighted agriculture and agribusiness as vital pillars for economic transformation, stressing that an innovative and vibrant economy driven by agriculture could unlock significant potential and drive job creation.

The Chamber of Agribusiness Ghana (CAG) has noted that, with the right incentives, the billions spent annually on imported meat products could be retained within the country, spurring local production and economic growth. At the same time, the Ghana Livestock Breeders and Traders Association (GLIBTA) has emphasized the potential for livestock markets, such as the Tulaku Cattle Market, to contribute further to the economy. The market, which generates an estimated GH₵600 million monthly, complies with tax regulations, but challenges remain in improving infrastructure, animal health, and biosecurity.

GLIBTA’s Chairman, Alhaji Moro Akakade, expressed frustration over the lack of attention from previous agriculture ministers to the sector’s needs. However, the association remains hopeful that the new government will engage stakeholders to tackle these challenges and transform the livestock industry into a cornerstone of Ghana’s economic recovery.

In conclusion, prioritizing livestock production and supporting infrastructure improvements in the agriculture sector could significantly reduce Ghana’s dependence on imports, create jobs, and boost the country’s economic prospects.

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