Gov’t to invest US$3 Billion in commercial agriculture

The Minister of Finance, Dr. Cassiel Ato Forson, has announced a US$3 billion investment in commercial agriculture under Pillar two of the New Economy Programme.

Presenting the 2027 Budget, Dr. Forson said agriculture will be a key driver of jobs, food security and industrial growth.

A key plank of the strategy is the construction of the Pwalugu Multipurpose Dam at a cost of $1 billion.

The dam will irrigate 25,000 hectares of farmland, provide facilities for 1,000 fish cages within the reservoir, support year-round vegetable production, ensure flood protection and water security, and generate 70 MW of hydropower.

The first phase is expected to be ready by early 2029, with full completion in 2030.

Government will also develop eight integrated agricultural industries and establish Rice Development Hubs in the Afram Plains, Volta Basin, Western Ghana and Northern Ghana.

The hubs will introduce irrigation, mechanisation, silos, modern mills, packaging and logistics.

An additional 100,000 hectares will be brought under rice cultivation, targeting yields of 5 to 6 metric tonnes per hectare and creating approximately 125,000 jobs.

He added that public procurement laws will be amended to ensure public institutions purchase only Ghana-grown rice and other staple foods using public funds.

Additionally, the government aims to achieve self-sufficiency in sugar production by 2030 through locally grown sugarcane, irrigated production zones and nucleus estates.

It will organise out-growers and establish commercially viable sugar mills, while introducing import permits and quotas to restrict sugar imports as local production increases.

For those in the poultry industry,
government will develop the entire poultry value chain, including breeder farms and hatcheries, day-old chicks, animal feed, vaccines and veterinary laboratories, modern poultry houses, processing plants, cold storage and retail distribution.

It will also develop commercial maize and soya bean production to reduce feed costs, which currently account for 60 to 70 percent of poultry production costs.

Furthermore, government will address Ghana’s estimated annual fish supply gap of 500,000 metric tonnes by making aquaculture the main source of new fish supply while restoring marine and inland fisheries.

It will support commercial and smallholder fish farmers with quality broodstock and fingerlings, fish feed, cages, ponds and tanks, aquatic health laboratories, disease surveillance and water-quality management systems.

Touching on oil plan, Dr.Ato Forson said, government will develop 100,000 hectares of new oil palm plantations across the Western, Central, Eastern, Volta and Ashanti regions.

Nurseries, nucleus estates and smallholder farmers will be connected to modern mills, refineries and manufacturing facilities.

He noted that US$500 million World Bank financing arrangement has been secured for consideration by Parliament. The programme has the potential to create more than 250,000 jobs, with a target of self-sufficiency and export capacity by 2032.

Approximately 100,000 hectares of suitable land have been identified, with acquisition processes underway.

The Finance Minister revealed that government will develop the vegetable industry around the Pwalugu Multipurpose Dam, with US$1 billion invested in the dam.

Dr.Ato Forson finally noted that government will process at least 50 percent of Ghana’s cocoa locally by 2028 and increase local processing to 100 percent by 2030, completing the transition towards ending raw cocoa exports.

Production will be expanded beyond primary grinding into cocoa liquor, cocoa butter, cocoa cake, cocoa powder, chocolate, cosmetics and other finished products.

By Edem Mensah-Tsotorme