Agriculture Investment Guide Released to Boost Ghana’s Agribusiness Sector
The newly launched Agriculture Investment Guide aligns with Ghana’s Food and Agriculture Sector Development Policy (FASDEP II) and aims to attract accelerated investment into the agricultural sector. The guide places strong emphasis on increasing productivity, growth, and transformation while creating jobs, boosting incomes, and ensuring long-term food security.
Over the years, agriculture has played a pivotal role in the development and growth of Ghana’s economy. However, its contribution to GDP declined from 29.8% in the five-year period between 2010 and 2015 to 20.3%. Nonetheless, it remains a significant contributor to the economy by employing 44.7% of the total workforce, as reported by the GLSS6 in 2014. Notably, foreign direct investment (FDI) inflows into the agriculture sector recorded US$1.3 billion between 2008 and 2016, according to the Ghana Investment Promotion Center (GIPC).
The enhancement of Ghana’s agribusiness sector holds the potential for higher incomes and increased employment opportunities. Encouraging private participation allows Ghana to compete globally, promoting economic growth, structural transformation, and improved technical skills. These factors, in turn, stimulate economic activities and foster connections across major sectors within the Ghanaian economy.
As part of the efforts to modernize agriculture, boost productivity, and transform the sector, the Ministry of Food and Agriculture (MoFA) has established the Agribusiness Unit (ABU) in 2012. The ABU plays a pivotal role in facilitating investment in agriculture and providing technical support to agribusinesses. The unit works closely with the Ghana Investment Promotion Center (GIPC) and the Ghana Commercial Agriculture Project (GCAP) to achieve its objectives.
The Agriculture Investment Guide serves as a comprehensive reference document, offering valuable information on institutions, regulations, and policies relevant to the agricultural sector. It highlights the incentives available to investors in the agriculture sector and provides guidance on the necessary procedures for establishing successful agricultural investments. The guide ensures that investments align with national policies and regulations while assisting interested investors in making well-informed decisions.
The government’s flagship program, “Planting for Food and Jobs,” along with other initiatives like the Ghana Commercial Agricultural Project (GCAP), demonstrate the Ministry’s commitment to increasing private investment in the sector.
The Agriculture Investment Guide is divided into nine chapters covering a range of topics. These include general information on agricultural policies and sub-sector policies, agricultural infrastructure such as irrigation facilities, pack houses, warehouses, and cold terminals, laws and regulations governing the agriculture sector, the labor market situation, land acquisition and registration for agricultural use, financing schemes, investment laws and regulations, incentives for agricultural investments, and the processes of registering and establishing agricultural firms and businesses.
The guide aims to address the information gaps that potential investors may encounter when establishing agribusinesses. It presents opportunities, incentives, and an overview of policies and regulations that investors need to be aware of and adhere to.
The Agriculture Investment Guide serves as a valuable resource for investors, providing comprehensive information to harness the potential of Ghana’s agricultural sector and contribute to its growth and development.