The Importance of Ghana’s Agriculture Sector to Economy

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Sustainable Agricultural
Agricultural

As a branch of the world economy, agriculture plays a crucial role in human life.

Its primary goals are to satisfy the food demand and provide other industries with raw materials. Problems in agriculture lead to social tension and instability in society. Therefore, its development is controlled in all countries one way or another. However, in certain countries, the significance of agriculture is more obvious. 

 

As for Ghana, the country’s agricultural sector is well-established and provides formal and informal employment thanks to the cultivation of various types of crops across different climatic zones. The main products that the industry produces include cocoa, grains, palm oil, tobacco, rubber, cotton, sugar cane, and timber. The country’s government realizes the importance of agriculture and enhances the industry by implementing modern farming technologies and ag monitoring methods. 

 

To understand why countries should not neglect agricultural impact on the economy, we will go through the main reasons this industry is so vital in the economy of Ghana.

It’s the primary supplier of raw materials

Sugar, cotton, palm oil, and wood are among the many valuable raw materials agriculture provides. And all of those are critical for the production process in other major industries, including pharmaceuticals, plastic, diesel fuel, and other products manufacturing. The dependence of the overall country’s production on agriculture-provided raw materials is so strong that its economic health very much relies on the number of raw materials it has at its disposal.

It plays a huge part in the country’s export

Most developing countries rely on agricultural products exported in their foreign trade, hence receiving most of their national revenue. And even though the economies of developed countries are not as dependent on agriculture when it comes to trade, they would still feel a staggering difference without its input.

It provides workplaces

Agriculture is one of the biggest job providers worldwide, especially in developing countries. And it covers not only farmers but also scientists, experts, technicians that perform farm equipment maintenance, and many others, ensuring workplaces for different specialists. This significantly reduces the unemployment rate and poverty in many countries.

It improves rural development

It’s evident that for the countries with low-income levels, investment in agriculture, especially in small-scale farming, is more effective for reducing poverty than investing in any other industry, as it allows the rural areas to benefit from its main assets – land and labor directly.

 

People can become agriculture specialists, combine farming with other more profitable non-agricultural activities (individual entrepreneurship, rendering services, etc.), or completely abandon agriculture and engage in other activities. All of this consequently improves the quality of life in rural areas.

It feeds the population

Last but not least, the importance of agriculture lies in food supply worldwide. Farming is what feeds the people and prevents hunger. And that is especially critical now when the world population is rapidly growing. That is why countries, including Ghana, strive to become more sustainable in the agricultural sphere to ensure sufficient food supply while minimizing resources in its production.

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