The Development Bank Ghana (DBG) has revealed its intention to make targeted investments across four value chains in the agriculture sector, with the aim of addressing the prevailing food insecurity in the country caused by inadequate local production to meet consumption needs.
This initiative comes amidst increasing concerns about high food prices in Ghana, which have contributed to the country’s record-high inflation rate of 53.1% as of January 2023.
The DBG’s efforts to ramp up local production in the agriculture sector could play a crucial role in stabilizing food prices and improving food security in the country.
According to Deputy Chief Executive Officer (CEO) of DBG, Michael Mensah-Baah, the four value chains that the bank intends to invest in are poultry, rice, maize, and soybean. These value chains have been selected based on their potential to make a significant impact on the country’s food security and the current challenges faced by farmers in these areas.
The DBG’s investment will be complemented by policy reforms in the four value chains, which will be based on the challenges identified through workshops held by the bank. The workshops, scheduled to commence on March 8, 2023, will engage relevant stakeholders in the agriculture sector to identify the obstacles hindering the sufficient production of food in the selected value chains.
The challenges identified will be compiled and presented to policymakers for reforms that will be complemented by medium to long-term financing from the bank. This initiative will ensure that farmers in these value chains have access to the necessary resources and support to increase their output, thus improving food security in the country.
Food insecurity is a significant challenge in Ghana, with the country having one of the highest food prices globally. The high food prices are mainly attributed to low food output by farmers and high imports, particularly of poultry and rice, which have annual import bills of $600m and $1bn, respectively. These high food prices have further entrenched the food insecurity already facing the country, which has prompted the DBG’s investment in the agriculture sector. The DBG’s investment in the agriculture sector could potentially have a significant impact on the country’s economy. The agriculture sector employs approximately 44% of the country’s workforce and contributes about 20% of the country’s gross domestic product (GDP).
Thus, increased investment in the agriculture sector could stimulate economic growth and development, leading to the creation of jobs and increased income for farmers and other stakeholders in the value chains. The DBG’s investment in four value chains in the agriculture sector is a commendable initiative aimed at improving food security in Ghana. The workshops scheduled by the bank to engage relevant stakeholders in the sector will ensure that the challenges faced by farmers in these value chains are identified and addressed through policy reforms and medium to long-term financing.
The investment in the agriculture sector could potentially stimulate economic growth and development, leading to increased income for farmers and other stakeholders in the value chains, as well as improved food security in the country.