Ghana’s Finance Minister Announces $3 Billion Agricultural Investment
The Ghanaian Minister of Finance, Dr. Cassiel Ato Forson, revealed a substantial investment of $3 billion aimed at enhancing commercial agriculture, as part of Pillar Two of the New Economy Programme. This initiative was presented during the unveiling of the 2027 Budget.
Agriculture as a Catalyst for Growth
Dr. Forson emphasized that agriculture will serve as a pivotal engine for job creation, food security, and overall industrial development. A significant component of this strategy includes the construction of the Pwalugu Multipurpose Dam, which is projected to cost around $1 billion.
Pwalugu Multipurpose Dam: Key Features and Timeline
The Pwalugu Dam will facilitate irrigation for approximately 25,000 hectares of farmland and include provisions for 1,000 fish cages within its reservoir. Additionally, it aims to promote continuous vegetable production, ensure flood protection and water security, and generate 70 MW of hydropower. The first phase of the project is slated for completion by early 2029, with full operations expected by 2030.
Integrated Agricultural Industries and Rice Development Hubs
The government plans to establish eight integrated agricultural industries and set up Rice Development Hubs in various regions, including the Afram Plains, Volta Basin, Western Ghana, and Northern Ghana. These hubs will introduce modern irrigation methods, mechanization, silos, mills, packaging and logistics.
Aiming to cultivate an additional 100,000 hectares for rice production, the government targets yields between 5 to 6 metric tonnes per hectare, which could generate approximately 125,000 jobs. To promote local sourcing, amendments to public procurement laws will ensure that public institutions prioritize Ghana-grown rice and staple foods in their purchases.
Towards Self-Sufficiency in Sugar and Poultry Industries
The government also aims for self-sufficiency in sugar production by 2030 through the use of locally grown sugarcane, irrigated farming zones, and nucleus estates. The plan involves organizing out-growers, establishing commercially viable sugar mills, and introducing import regulations to gradually reduce reliance on sugar imports as local capabilities increase.
In the poultry sector, a comprehensive approach will be taken to develop the entire value chain, including breeder farms, hatcheries, and modern processing plants. Efforts are also underway to boost commercial maize and soybeans production to decrease feed costs, which account for a significant portion of poultry production expenses.
Addressing Fish Supply and Oil Palm Plantation Initiative
To tackle Ghana’s estimated annual fish supply deficit of 500,000 metric tonnes, the government plans to make aquaculture a primary source of new fish supply while revitalizing both marine and inland fisheries. Support will be provided to both commercial and smallholder fish farmers, offering resources such as quality broodstock, fingerlings, and aquatic health management systems.
As part of the broader agricultural strategy, the government will also develop 100,000 hectares of new oil palm plantations across various regions, including Western, Central, Eastern, Volta, and Ashanti. This initiative aims to connect nurseries and smallholder farmers to modern processing facilities.
Job Creation and Future Prospects
Dr. Forson noted that a $500 million financing arrangement with the World Bank has been secured for parliamentary consideration. This comprehensive program has the potential to create over 250,000 jobs, with goals set for self-sufficiency and export capacity by 2032. An estimated 100,000 hectares of suitable land have already been identified, with acquisition processes currently underway.
Local Cocoa Processing Goals
The Finance Minister concluded by stating that the government aims to ensure that at least 50 percent of Ghana’s cocoa is processed locally by 2028, with a total transition to 100 percent local processing expected by 2030. This move will extend beyond basic grinding into production of cocoa liquor, butter, powder, chocolate, and related finished goods.
By Edem Mensah-Tsotorme
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