A John Mahama Agro-Economic Transformation through a 24-Hour Economy

Agriculture is not just a sector, it is the heartbeat of Ghana’s economy, a living testament to the grit and determination of a people who rise with the sun to feed a nation.

From the fields of cassava and cocoa to the shores of fishing communities, agriculture employs nearly half of the population, feeds millions, and contributes roughly 20% to the nation’s GDP.

Yet, despite its centrality to Ghana’s economic and cultural identity, the full potential of agriculture remains untapped, locked behind a government that prioritizes kickbacks, and enjoys self-gratification and raw material exports over value addition.

The question is no longer why we fall short of producing the food we eat but how long will we tolerate lazy leaders who refuse to unlock the transformative power of agriculture. To imagine a Ghana that processes its cocoa cans its pineapples, processes it yam, and freezes its cassava is not idealism, it is a moral and economic necessity.

As we discuss agriculture’s role in a 24-hour economy, we must dispel the myths and misconceptions surrounding it.

No, it does not mean farmers toiling in their fields day and night - these are the concoctions of mischief. It means a system where agriculture operates as a seamless cycle, planting, harvesting, processing, and exporting value-added products, around the clock.

This vision transforms farming into the foundation of a thriving agribusiness ecosystem, with agro-processing and manufacturing working tirelessly to turn raw produce into goods that create jobs, increase incomes, and strengthen Ghana’s global competitiveness.

For too long, Ghana has been content with exporting its raw materials while other nations reap the benefits of processing them.

Take cocoa, for example when Ghana was the world’s second largest producer of cocoa beans, it processed less than 30% of its yield. Compare this to Malaysia, which imports cocoa beans from countries like Ghana and processes over 90% of its stock into chocolates, cocoa butter, and other high-value products.

The difference is staggering: while a ton of raw cocoa according to the International Cocoa Organisation fetches approximately $7,138.00 as of November 28, 2024, on the global market, the same amount of processed chocolate products can sell for up to $35,000.

Similarly, Ghana’s vast output of cashew nuts, shea butter, and oil palm often leaves the country in raw form, forfeiting billions in potential revenue. Contrast this with Vietnam, a country that shifted from being a raw agricultural exporter to the world’s largest cashew processor.

Vietnam turned its agricultural sector into a $3 billion yearly export industry by making significant investments in processing factories and establishing laws to assist smallholder farmers.

Ghana has the resources to achieve similar success, but it has failed to prioritize agroprocessing. The NPP government, despite its lofty rhetoric, has done next to nothing or very little to create an enabling environment for value addition.

The much-touted “One District, One Factory” initiative promised to establish processing plants across the country, but many of these projects were nonexistent, the few that started have either stalled or failed to materialize.

According to the Ghana Statistical Service, manufacturing’s contribution to GDP decreased to 4716.90 GHS Million in the second quarter of 2024 from 6191.70 GHS Million in the first quarter of 2024 with agro-processing accounting for only a fraction.

The concept of a 24-hour agricultural economy envisions more than just farmers producing raw crops.

It is a cycle in which cottage to medium and largescale processing plants are constructed in carefully designed Agro-industrial enclaves that operate around the clock, supported by economic incentives, technical support, efficient logistics, supply chain development programmes, cold storage facilities, and export channels.

This will generate in its wake a large demand for agricultural output as raw materials, which drive further the demand for the agricultural products and for that matter huge investments and market opportunities for smallholder and large-scale commercial farmers.

Picture this: farmers produce output for a guaranteed market by the agro-industries and deliver fresh produce to nearby factories at any time of the day.

These agro-processing factories produce round-the-clock churning out processed goods, shea butter lotions, chocolate bars, canned pineapple juice, frozen cassava flour—destined for local and international markets.

This is certainly not the absurd scenario of farmers working 24 hours as portrayed by the clueless NPP government and their functionaries, but rather a call for creating a strong value chain, incentivizing agro-processors to scale up operations and ensuring that no harvest goes to waste.

It is about maximizing the potential of agricultural produce to create sustainable well paid jobs as farmers, factory workers, technicians, and logistics managers.

It is about ensuring that farming communities benefit not just from selling raw goods but from the profits of processed exports.

Unfortunately, the Akuffo-Addo-Bawumiah-led government has repeatedly fumbled opportunities to build such a system. Under their leadership, the agricultural sector has been poorly managed.

Key policies have been unsuccessful in improving crop and livestock productivity while little or no effort has been made to target the downstream processes of processing and marketing. Worse still, corruption and inefficiencies have drained resources from initiatives meant to help farmers.

For example, the failure to implement an efficient input support programme has led to low crop yields, high food prices, and a worsening food security situation.

The inability of government to establish functioning storage facilities across agro-zones has heightened postharvest losses leading to about 30% losses of perishable produce, according to the Food and Agriculture Organization.

Meanwhile, bad road networks, poor transportation services, and poorly maintained intercity road networks leave farmers at the mercy of a few cheating aggregators, due to the farmers' inability to transport agro-produce to the markets or processing hubs in time, thus deepening rural poverty.

Ghana must take a page from countries like Brazil, which transformed its agricultural sector by investing in agribusiness, research, and export diversification. Brazil’s agro-industrial sector operates as a 24-hour economy, turning sugarcane into ethanol and soybeans into animal feed, all while creating millions of jobs.

To replicate such success, Ghana must focus on: •Productivity Improvements:

The John Mahama/NDC government proposes Farmer Services Centers and the Farmland Banks as one-stop shop input support programmes to accelerate farmer productivity and significantly cut down production costs.

•Policy Support for Agro-Processing:

The incentives regime of the 24-hour economy and the Agro-industrial enclave programmes will tax incentives, credit support, and other social service incentives to encourage the establishment of processing plants in agricultural zones, especially in rural areas.

•Infrastructure Development:

Invest heavily in the expansion, rehabilitation, and construction of robust irrigation facilities, storage facilities, silos, cold storage facilities, reliable road networks, and reliable water and power supply sources to facilitate 24-hour operations.

•Training and Technology:

Equip farmers and processors with modern techniques and machinery to enhance efficiency and productivity. As well as introduce advanced agro-mechanization technologies to modernize our agriculture.

•Public-Private Partnerships:

The NDC shall pass a Farmer Cooperatives Bill and collaborate with the private sector to scale up investments in agriculture, agribusiness, and agro-processing.

•Export Diversification:

Through an Accelerated Export Council to be chaired by President Mahama himself, NDC government shall invest in branding Ghana’s processed goods for international markets, moving beyond raw cocoa and cashews to finished products that command higher prices.

As the elections approach, let us remember that change is not just a ballot box decision; it has become a moral imperative.

Ghana needs leaders who understand the full value chain of agriculture, who can envision a 24-hour economy that empowers farmers and processors alike, and who will finally prioritize value addition over raw exports. The road ahead may be long, but with the right leadership, brighter days lie ahead. The time for change is now. Let us rise to the occasion.

Authored by: Dr. Peter Boamah Boamah Otokunor, Ch.FE, F.ChE

NDC Spokesperson on Agriculture and Dir. Of Interparty and Civil Society Relations, NDC

(The author is an Agricultural Economist, a Chartered Financial Economist, a Lecturer at the Department of Economics and Actuarial Science, University of Professional Studies, and a Fellow of the Association of Chartered Economists,)