The General Agricultural Workers Union (GAWU) of the Ghana Trades Union Congress and the Peasant Farmers Association of Ghana (PFAG) have urged the government to direct part of the inflows to be secured from the International Monetary Fund into the agriculture sector of the country.
This is a result of Ghana’s agricultural sector being in crisis, but the current situation may worsen if the government does not intervene. As the prices of food increase in both rural and urban areas, Ghana’s government has made several statements to support but real actions have not been taken to support the country’s farmers, leaving them in financial ruin.
Recent reports have indicated that farmers across Africa are already in trouble due to falling crop prices, increasing transportation costs, reduced levels of fertilizer supplies, and weakening national currencies.
What’s on the Ground in Ghana
The Ghanaian agricultural sector has come under fire over the past few years as the cost of raw materials continues to rise, making it harder for farmers to afford fertilizer and equipment. Most farmers spend between 50% and 70% of their income on the three major inputs – seed, fertilizer, and pesticides – required to grow crops on their land.
Most of these farmers also depend largely on natural rainfall patterns and sometimes little changes destroy almost all their crops. With farmers already struggling to keep up with rising prices, it’s not surprising that many have fallen into debt, been forced off their land, and others moving abroad in search of better opportunities.
The government of Ghana has promised to invest more in the agricultural sector, but so far it has not followed through on its promise. This lack of investment has led to a crisis in the sector, with rising food prices and shortages of food.
Rising Food Costs and Shortage of Food in Senior High Schools
In Ghana, the cost of food has been rising steadily for the past few years. This is due to several factors, including a shortage of food in the country and rising raw materials for agricultural production. Banks and other financial institutions give out loans to businessmen in other sectors rather than give them to farmers and this has put a lot of constraints on farmers making them increase the prices of their crops.
The government has intervened by subsidizing food prices, but this has only been a temporary measure. Recently, there has been a shortage of food in Ghana’s Senior High Schools (SHS). This is due to the rising cost of food and it has created a big problem for caterers and our younger ones in the Senior High Schools.
The African Agricultural Sector
It is estimated that 80% of all economic activity in Africa comes from agriculture. Not only does it account for 40% of GDP, but it also provides employment to 60% of the population and covers 50% of Africa’s export earnings.
Despite these figures, Africa spends less on agriculture than any other continent. According to a study by FARM Africa, US$5 billion (AU$6 billion) is needed annually for 10 years just to bring African farming up to date with international standards – but as Africans spend US$130 billion annually on imported food (AU$157 billion), there seems little appetite for increasing domestic production.
The Way Forward
The long-term solution lies in boosting the country’s agricultural sector. The government needs to invest more money in agriculture and create policies that will encourage farmers to produce more food. They also need to take measures to ensure sustainability such as providing access to resources and credit so that when harvests are bad, we have enough food stored up.
The government of Ghana must provide subsidies to farmers and help the sector by investing in irrigation systems and extensive research. Storage and transportation infrastructure should be improved so that food can get to market more quickly and efficiently.