Agriculture in Ghana

8/4/2019 Agriculture in Ghana

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INVESTMENTINVESTMENT

OPPORTUNITIES INOPPORTUNITIES INGHANAGHANAS AGRICULTURES AGRICULTURE


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NATIONAL INVESTMENT FORUMNATIONAL INVESTMENT FORUM

HON. ERNEST A. DEBRAH, MINISTER

FOR FOOD AND AGRICULTURE

PRESENTS

INVESTMENT OPPORTUNITIES INGHANAS AGRICULTURE SECTOR


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ORDER OF PRESENTATIONORDER OF PRESENTATION

Agriculture in Ghana

Government Policies

Agricultural Policies

Investment opportunities inagriculture

Doing Business in Ghana

Advantages for locating in Ghana


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1. AGRICULTURE IN GHANA1. AGRICULTURE IN GHANA

The agricultural sector is almostexclusively represented by smallholder

activity farming on plots of less than 1.5hectares.

Productivity is generally low byinternational standards because ofprevailing traditional low-input, shifting

cultivation farming systems.

The productivity of crops is also volatile

because it is largely dependent on erraticrainfall.


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AGRICULTURE IN GHANA cont.AGRICULTURE IN GHANA cont.

Within its wide range of agro-ecological

zones, where opportunities for bothimproved water management andirrigation exists, agriculture in Ghana

possesses many natural advantages.

Application of existing technologies tosmallholder systems wouldsignificantly increase unit area yields

for all crops.


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AGRICULTURE IN GHANA cont.AGRICULTURE IN GHANA cont.

There is need for the emergence ofmedium and large-scale agricultural

enterprises financed by the private sectorto transform agriculture into a highlyproductive and efficient sector, capable ofachieving and sustaining a 6% annualgrowth rate over the medium term.

This is crucial if broad-based agriculturalgrowth capable of reducing poverty andaccelerating economic growth is to be

realised.


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Land use in agricultureLand use in agriculture

Item Hectares %

Total Land Area 23,853,900 100.00

Agricultural Land Area 13,628,179 57.10

Agric. Land Under Cultivation 5,300,000 38.90

Cultivated Area Under Irrigation 19,000 0.36

Area Under Inland Waters 1,100,000 4.60

Other 9,125,721 38.30


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AgroAgro--ecological zonesecological zones

5 main agro-ecological zones

Rain forest

Deciduous forest

Transitional zone

Coastal savannah and

Northern savannah


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Agriculture in the Ghanaian economyAgriculture in the Ghanaian economy

Dominant sector in the Ghanaian economy

Employs about 60% of the labour force

Contributes about 40% to GDP

Accounts for over 57% of foreign exchange earnings.

- Major Agro Exports

Cocoa Timber and wood products

Horticultural crops (Pineapple, Pawpaw,

Mango, Vegetables, etc) Tuna


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Agricultural subAgricultural sub--sectorssectors

The sector is made up of 5 sub-sectors

Cocoa

Crops other than cocoa Livestock

Fisheries

Forestry


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The non cocoaThe non cocoa crop subcrop sub--sectorsector

Cereals maize, rice, sorghum, millet

Legumes and pulses cowpea, groundnut,

beans Root and tuber cassava, yam, cocoyam,

sweet potato

Industrial crops cotton, oil palm, rubber,coconut

Horticultural crops pineapple, mango,citrus, chilli pepper, tomatoes, other fruitsand vegetables

Other crops plantain, banana, ginger, etc.


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Livestock subLivestock sub--sectorsector

Poultry Chicken, Guinea fowl,

Duck, Ostrich

Pigs

Small Ruminants Sheep and

Goats, Grasscutter, Rabbit

Large Ruminants Cattle


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Characteristics and challenges of agriculture inCharacteristics and challenges of agriculture in

GhanaGhana

Production is predominantly rain-fed

Sector dominated by smallholders

Smallholder farmers produce about80% of the total agricultural productionin the country

Low level of technology

High post harvest loses


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Characteristics and challenges ofCharacteristics and challenges of

agriculture in Ghana Cont.agriculture in Ghana Cont.

Low value addition

Women are the predominant producers of theannual crops

Insufficient flow of institutional credit

Inadequate supply and distribution of inputs

Inadequate storage and marketing facilities

Low synergy among sub-sectors of agriculturehence opportunities new industries


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2. GOVERNMENT POLICIES2. GOVERNMENT POLICIES

A series of comprehensive macro economicreforms and structural adjustment over thelast few decades to move the country from acontrolled system to a liberalized and freemarket economy.

Removal of subsidies on agricultural inputsPrivatization of the distribution of agricultural

inputs

De-regulation of the exchange rate amongothers

Revision of the investment code to allowincreased investment by the private sector.


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3. AGRICULTURAL POLICIES3. AGRICULTURAL POLICIES

Overall national goal Ghana to attain amiddle income status with a per capita

income of US$1,000 by the year 2015within a decentralized and democratic

environment.

Achievement of the national goalrequires the agricultural sector to leadthe process through accelerated growth.


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Strategy

Modernizing agriculture throughmechanization, irrigation and use of

improved technologies

Key objectives

Food security

Agricultural raw materials for

industry

Agricultural commodities for export

Increased contribution to GDP


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Public goods to be contributed byPublic goods to be contributed by

governmentgovernmentIrrigation facilities

Improved rural infrastructure

Support to research

Strengthening extension services

delivery

Strengthening research-extension-farmer linkage

4 TRADE AND INVESTMENT4 TRADE AND INVESTMENT


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4. TRADE AND INVESTMENT4. TRADE AND INVESTMENT

OPPORTUNITIES IN ARICULTUREOPPORTUNITIES IN ARICULTURE

Support services

Increasing the density of agric mechanization servicesin production areas

Increasing the provision of post harvest facilities

including processing

Instituting standards and training for local productionof tools and implements

Support in and capacity building for farm businessand agribusiness management and market-orientedenterprises

Market intelligence research


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Support services cont.

Upgrading extension skills in cash croporientation

Developing appropriate agricultural financiallending packages

Building stronger associations

Developing industry rules and regulations

Value addition to primary production

Segment the agricultural sector and championnational drive to encourage corporate and

individuals to invest in the sector


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The crop subThe crop sub--sectorsector

Development of a strong and sustainable staplefood sector responding to local and regionaldemand for maize, yams, cassava, cowpea and

traditional vegetables. Production and marketing of horticultural products

in the national, regional and European Union (EU)

markets.

Vast potential for significant development in thevalue-added and processing sectors tocomplement fresh production of cocoa, oilpalm,citrus, mango, cashew, cotton and coconut.

Development of private irrigation facilities.


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The crop sub-sector continued

Production and distribution of improved seeds,planting materials and agro-chemicals(fertilizer, pesticides, weedicides)

Production of all crops, particularly rice,

mango, pineapple, chillies, Asian vegatebles,tomatoes, cashew

Value addition/processing of all crops,particularly cocoa, cassava, sweet potato,

tomato, pineapple, mango, maize, soybean

Th h ti lt i d tTh h ti lt i d t


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The horticulture industryThe horticulture industry

Supply and installation of cold chainequipment

Supply of packaging material

Post production services (transport,

packaging, cold vans) Joint ventures

Organizing small-holders into out-growersystems for production and marketing

Capacity building on standards, training andcertification.

Th li t k bThe li estock s b tsector


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The livestock subThe livestock sub--sectorsector

Production and distribution of Veterinary drugs,vaccines and chemicals, feed and feed ingredients

Establishment of Hatcheries for day-old chicks

Breeding programmes for high quality animals

Cut meat and processed meat

Processing of dairy products

5 DOING BUSINESS IN GHANA5 DOING BUSINESS IN GHANA


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5. DOING BUSINESS IN GHANA5. DOING BUSINESS IN GHANA

AGRICULTUREAGRICULTURE

Investment Incentives

Tariffs/Non-tariffs

Tariff Zero rated for agro inputs, plant andmachinery

Non-Tariff Observation of regulations onimport/export of agro-products

Income Tax IncentivesCorporate tax 8% tax on income from export

of non-traditional agro-products

Tax holiday Depends on type of venture

L ti I ti


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Location Incentives

Agro-processing enterprises that use localagricultural raw materials as the main inputshall have corporate tax rates based on

locationAccra-Tema - 20%

Other Regional Capitals - 10%

Outside Regional Capitals - 0%

Investment Guarantee

Free transferability of capital, profits and

dividends


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Government Land Banks

Government is identifying andclassifying lands into Land Banks.These would be available toprospective investors depending upontheir choices of location and the types

of enterprises they intend to undertake.


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6.Advantages for locating in Ghana6.Advantages for locating in Ghana

A stable political environment

A sound macroeconmic policy 100% foreign ownership permitted

A large Economic Community of WestAfrican States (ECOWAS) market (250

million people)

Good and ever improving physical

infrastructure


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THANK YOU

Documents

Agriculture in Ghana