Only 15.0% of farms in Ghana are commercialized, C-Energy Global Holdings has stated.
It report on “Creating Agriculture Financing Schemes for Sustainable Agriculture and Food Security” also revealed that only 4.0% of total bank lending in Ghana went into agriculture in the last five years.
The report said low mechanization, poor farm recordkeeping, poor rural transportation infrastructure, post-harvest losses, among others are the core challenges affecting the agriculture sector performance and hindering finance for the sector. Typically, agriculture portfolios are thin for all financier groups.
“Agriculture however remains rain fed and on a subsistence basis with only 15% of farms in Ghana commercialized. Low mechanization, poor farm recordkeeping, inadequate storage & processing capacities, poor rural transportation infrastructure and post-harvest losses are the core challenges affecting agriculture sector performance and disincentivizing financing for the sector”.
Considering the existing funding gaps, the report, said more interventions are expected from funds and financial institutions especially the Agriculture Development Bank and Ghana EXIM Bank whose core mandates include providing funding to actors in the agriculture value chain.
In the wake of climate change, the report also warned of the rising food security risk in the country.
Ghana is one of the top 10 countries impacted severely by climate change despite contributing the least to global warming.
The country saw an unprecedented rise in food prices from 2022 evidenced by the national food price index which increased by 23.8% in 2022.
Ghana’s agric economy valued at about $12.6bn
Ghana’s agriculture economy is valued at about $12.6 billion. The sector contributed an average of 20% to Gross Domestic Product in the last five years.
Cash crops and other commodity exports from agriculture account for 20-25% of total export revenues for the nation.
The sector is also responsible for employing over 35% of the total employed labor force.
Source:www.myjoyonline.com