Article by: Zakaria Issahaku, PhD
The recently released data from the Ghana Statistical Service (GSS) paints a stark picture of a critical challenge facing our nation: the simultaneous rise of food insecurity and a massive reliance on imported food.
This isn't just a social issue; it's a pressing economic one.
The Two Sides of the Coin:
1. The Human Impact: Food insecurity in Ghana now affects 13.3 million people. This is a profound social challenge that demands immediate and sustainable solutions.
2. The Economic Drain: In 2024, Ghana spent approximately GH¢12 billion on major agricultural and food imports. To break that down:
o Rice: ~GH₵ 3.0 billion
o Animal Parts & Offal: ~GH₵ 2.7 billion
o Frozen Poultry: ~GH₵ 2.6 billion
o Sugar: ~GH₵ 2.4 billion
3. We are spending billions of Cedis on food staples that have the potential to be produced locally, all while millions of Ghanaians cannot reliably access nutritious food.
The Bigger Economic Picture:
This GH¢12 billion food import bill is part of a wider structural issue. Between 2023 and 2024, Ghana spent approximately US$10 billion (GH¢100 billion) on essential non-food imports like machinery, vehicles, and fuel that we cannot yet manufacture locally.
Even if we successfully substituted all GH¢12 billion of these key food imports with local production—a monumental but crucial goal—we would still face a trade deficit of GH¢88 billion (US$8.8 billion). This gap underscores the immense pressure on the Cedi and highlights that food sovereignty is just one piece of our broader industrialisation puzzle.
The path forward requires a multi-pronged, collaborative approach:
• Investment in Agro-Processing: We must move beyond raw production to value addition. The recent opening of the Agritrade Rice Processing Factory in Tamale is a perfect example of the model we need to replicate across the country and for various commodities.
• Policy Consistency: Creating a stable and incentivizing environment for private investment in agriculture and manufacturing is non-negotiable.
• Public-Private Partnerships: Leveraging the expertise and capital of the private sector, supported by enabling public infrastructure and policy, is key to scaling solutions.
• Focus on Forex-Earning Sectors: While we build our local capacity, we must aggressively support and diversify our foreign exchange-earning sectors to finance the essential imports we still need.
The data is clear. The challenge is immense. But the opportunity to build a more self-reliant, food-secure, and economically resilient Ghana is within grasp.
what are your thoughts on how Ghana and indeed Africa can collectively turn this tide.
Email: Newswire@agricinafrica.com
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