Agribusiness has potential to generate US$5bn – GTLC

Ghana Trade and Livelihood Coalition (GTLC) has indicated that Ghana has a huge potential to raise about US$5billion from agriculture and agribusiness by 2030

This according to GTLC will be possible if the government will make the necessary capital injection to transform the agriculture sector in the next fourteen years and the US$5billion foreseeable worth of the agribusiness industry is just 5% of a projection made by the World Bank.

A report published by the Bank “Growing Africa, unlocking the potential of Agribusiness” revealed that agriculture and agribusiness are projected to create US$1trillion worth of industries in the Sub-Saharan Africa by 2030.

The Coalition has therefore pointed out that Ghana needs to position itself by creating the enabling environment for agriculture and agro-based industries to thrive; the Ministry of Food of Agriculture (MoFA) has to be adequately resourced and create the relevant value-chain to unearth the economic potentials.

The GTLC has observed that though the country has witnessed growth in nominal GDP as well as increases in the budget expenditure on annual basis, the share of MoFA budget has however been declining over the last seven years.

Since 2010, budget allocation to the Agric Ministry ranges from 0.94% to 1.77% of the total national budget estimates. The Coalition has attributed the insufficient financial allocation to the Ministry as the major factor of MoFA ’sin ability to provide minimum services like extension to smallholder farmers who constitute the majority of the country’s agricultural human resource base.

These issues were brought to light at a workshop organised by the Coalition in Sunyani for stakeholders’ analysis of the 2016 National Budget with special focus on the allocation to MoFA. The workshop formed part of the ‘Grow Campaign’ project of the Coalition with the support of Oxfam in Ghana.

The Coordinator of the Coalition, Ibrabim Akalbila said there is the need for a paradigm shift which demands more government commitment to adequately finance the agricultural sector beyond the private investment in order for the sector to flourish. “Issues like tax incentives for start-ups, macroeconomic stability, incentive schemes to attract highly qualified labour, one-stop shops for investors must not be compromised.”

He noted that ‘starving MoFA invariably means 50% of the country’s population will be unproductive as many are dependent on it; the fate of agro-based industries will increasingly shrinks as raw material eludes them.”

A participant and staff of MoFA, Felicia Asaabia Fosuhene in an interview said: “The decentralization system has compounded the woes of the Regional and District directorates of the Ministry. Since the implementation of this system matters have become worse; no monies to facilitate the work Agricultural Extension Agents; no money for repairs or replacement of broken down vehicles and acquisition of office stationary is also a challenge.”