KEYNOTE SPEECH BY THE HON. DR. OWUSU AFRIYIE AKOTO – FORMER MINISTER FOR FOOD & AGRICULTURE OF THE REPUBLIC OF GHANA
(THE 2023 AFRICAN INVESTORS COUNCIL FORUM IN TURKEY)
AGRICULTURAL DEVELOPMENT AND INVESTMENT OPPORTUNITIES IN AFRICA ; GHANA AS A CASE STUDY
- BACKGROUND
It is a great honour to be Invited to speak at this very important and significant occasion – The African Investors Council Forum, on the theme ; AGRICULTURAL DEVELOPMENT AND INVESTMENT OPPORTUNITIES IN AFRICA (GHANA AS CASE STUDY).
The theme seeks to promote Investment in African Agriculture as a means to promote economic development on the conWnent.
My graGtude goes to The Management and Leadership of the African Investment Council & Forum, as well as each and everyone of us here, for focusing on the investment needs for the development of Africa. - THE PAN-AFRICAN VISION
Mr. Chairman, it was only two weeks ago that we celebrated the Africa Union Day. The creaGon of Africa’s first post-independence conGnental insGtuGon, the OrganisaGon of African Unity (OAU), now the Africa Union (AU), was the manifestaGon of the Pan-African vision for an Africa that was united, free and in control of its own desGny as referenced in the OAU Charter which was adopted on May 25, 1963.
Indeed, the AU’s Africa ConGnental Free Trade Agreement (AfCFTA) presents us with impressive opportuniGes for deepening intra-African trade and for advancing the prosperity of the conGnent overall.
Today, I want to challenge all African governments, the private sector and all of us here with a stake in the economic development of Africa, to explore a new strategy to unlock the wealth of the conGnent for the direct benefit of the people of the conGnent in a meaningful and sustainable way.
It is Gme we stop perceiving Africa as a “potenGal” investment desGnaGon but as an “actual” investment choice for Regional Trade and Foreign Direct Investments. It is Gme to create more mutually beneficial opportuniGes for trade, investment and collaboraGon with the African conGnent.
To achieve this would require collaboraGon and poliGcal will of internaGonal actors to provide a level playing field in global trade – making it more fair and mutually rewarding. Such collaboraGon is what we are discussing today in Turkey, spearheaded by the African Investors Council.
It is imperaGve for each African State to emphasise the rapid growth of the Agricultural sector which relies more on internally generated resources, supplemented by foreign investment. - THE CASE FOR AGRICULTURE
Mr. Chairman, I strongly believe Agriculture can li` Africa out of poverty and assure not only food and nutriGon security, but also, generate the necessary foreign exchange and domesGc revenue for the development of the other sectors of our economies, including Industry, Health, EducaGon and Infrastructure in the medium to long term.
Globally, there is an emerging economic order which is evident from the current economic challenges confronGng the world. Food, Renewable Energy, Water and Big Data, will drive this new order. Africa has the potenGal to lead this new order by strengthening all sectors of its economy and transforming agriculture sustainably to feed and enrich its people, whilst contribuGng to the food and nutriGon needs of the 9.7 billion people globally by 2050.
Africa is plagued with the difficulty in transforming its agricultural sector into a driver of sustainable development, food security, and improved livelihoods, and I admit that Africa has not done enough. Over 200 million Africans conGnue to struggle with food insecurity. This issue has been further deepened by COVID 19, the effects of climate change on agricultural producGon, poliGcal unrest across the conGnent, macroeconomic instability, and the raging debt crisis that many African governments face. Despite these obstacles, the agricultural sector offers immense and significant opportuniGes for transforming Africa’s economy from a net importer of food to the provider of food to the rest of the world.
Many African states including Ghana, are facing challenges such as high rate of unemployment, inflaGon as well as the current economic crisis.
Brazil, China, Malaysia and Thailand are recent examples of agricultural success stories in driving economic transformaGon.
In recent years, the European Union (EU) have substanGaly improved crop yields through plant breeding techniques, improved farm markets, and improved trading condiGons in Agriculture. These have contributed to significant increases in World Food Supplies. - THE CALL TO SERVE
Mr. Chairman, Ghana’s dream of using agriculture as the driver for economic development can be traced as far back as the 1920s when the then governor, Gordon Guggisberg made pronouncements backed by iniGal investments to make agriculture work. Successive governments since then have made various attempts towards agricultural development in this direcGon. Yet there has been inadequate commitment to full agricultural transformaGon that yields the needed significant results to li` up the country from its economic woes.
Mr. Chairman, looking back at the last 6 years of my stewardship of Ghana’s Ministry for Food and Agriculture from January 2017 to January 2023, I will now present my efforts in laying the foundaGons for Ghana’s economic transformaGon through Agriculture. I am confident that if the foundaGons laid are built upon, they will lead to a thriving sustainable agriculture to bring about prosperity for all. - RECENT POLICY EXPERIENCES FROM GHANA
A. Food Security
The Ministry made significant Investment in farm inputs in order to increase agricultural producGvity that raises incomes of farmers, and achieves naGonal food security. To this end, the Ministry insGtuted the widely touted PlanGng for Food and Jobs (PFJ) Program. The government invested Gh₵2.6 billion as subsidy to procure and distribute 1.4 million MT of ferGlizer and 93,192 MT of improved seeds to over 1.7 million farmers from 2017 to 2021.
This investment generated farm output worth Gh₵47.5 billion at the farm gate. This is a huge economic rate of return on public expenditure under the PlanGng For Food and Jobs Program.
Under the program Maize yields increased from an average of 1.8mt/ha to 3.0mt/ha;
Rice yield increased from 2.7mt/ha to 4.0mt/ha and Soya yield increased from 1Mt/
ha to 2.5Mt/ha, in the same period. In Addition , within the same period, production of maize rose from 1.7 million to 3.6 million MT, Rice from 688,000MT to 1.2 million MT, and Soya from 143,000MT to 230,000MT over the same period.
In 2017, 202,000 farmers benefited from the PFJ Subsidy Program. By 2021, the beneficiaries had grown to 1.7 million farmers out of a total farmer populaGon of 3.1million in Ghana, as captured by the Agricultural Census of 2018 – the first conducted in 38 years.
B. Tree Crop DiversificaWon
Ghana has fallen into an almost perpetual cycle of dependency on external financial support from the InternaGonal Monetary Fund and other bilateral partners to sustain its economy. In 66 years, Ghana has approached the IMF on 17 occasions to borrow. The lesson from our journey with the IMF and bilateral donors is indicaGve of the urgent need to expand the export earning capacity of the Ghanaian economy to internally generate high value, risk free funds. In the short to medium term, only the agricultural sector can establish that capacity to achieve sustained rapid economic growth.
Under my tenure as the Minister for Food and Agriculture, in 2019 I iniGated the establishment of the Tree crop Development Authority under an Act of Parliament, Act 1010. The Tree Crop Development Authority (TCDA), established in 2020, seeks to coordinate and promote the development of six tree crops – Cashew, Rubber, Oil Palm, Coconut, Mango and Shea. The goal of the Authority is to develop, produce and distribute the selected cash crop seedlings to farmers so as to produce and generate a combined potenWal of export earnings between USD$6 to $12 billion per year aber 8-10 years of implementaWon. [Repeat]. At their full development, the addiGonal USD$6-12 billion per year in earnings can substanGally increase the less than USD$2 billion annual earnings from Cocoa – the current highest foreign exchange earner for Ghana for over a century.
The TCDA was designed to receive a seed fund of US$ 15million in the first three years of its creaGon. Unfortunately, in its 3rd year of operaGon, it has so far received only $1.3million equivalent to 25% of the capital needed since its establishment in 2020.
By prioritizing the Tree Crop sub-sector, Ghana would be weaned off its financial dependency on the IMF and other bilateral donors. If Ghana had started this journey decades ago, the country would have been closer to achieving its ‘Ghana beyond aid’ program instead of retrogressing from it.
Mr. Chairman, at this juncture I’ll reference our good neighbour, Cote D’Ivoire, who although has not fully realised its potenGal, has yet made significant achievements in this regard. Cote D’Ivoire’s total annual export earnings from five cash crops – Cashew, Cocoa, Coffee, Rubber and Palm oil, fetches the economy some US$8 billion annually, compared to the less than USD$2 billion Ghana earns from Cocoa.
COCOA
In Addition , to further enhance income and job creaGon from its only major export earner – Cocoa, the Ministry established the NaGonal Cocoa RehabilitaGon Programme (NCHP). Launched in 2020, the NCHP has been designed to put in measures that support the private sector to scale up Cocoa ProducGon, expand local Cocoa Processing, Promote market expansion of the export of cocoa products into new markets and for vigorous PromoGon to boost domesGc and internaGonal consumption.
Even at its initial stage, the NCHP has achieved some significant success, although inadequate. Thousands of farmers who had abandoned their cocoa farms due to the devastaGng effect of the Cocoa Swollen Shoot Virus Disease (CSSVD) returned to their farms. As of 30th September 2022, a total farm area of 56,343 hectares had been fully treated across the cocoa growing regions of Ghana.
When fully implemented, the NaGonal Cocoa RehabilitaGon Programme should generate more foreign exchange earnings from cocoa.
C. HorWculture Development through Greenhouse production
The construction of Greenhouse Training Centres with ajached commercial units is a key job and value creaGon tool for Africa’s economic development. Under my leadership of the Ministry, we constructed three greenhouse training centres with an ajached commercial unit at Dawhenya, Akumadan and Bawjiase in the Eastern Region of Ghana, for training 537 youth in high-quality vegetable producGon. These vegetables are sold to high end shops scattered across various cities in Ghana including the Palace Mall, Shoprite, Starbites, KFC, Burger King in Tema, amongst others.
And as part of efforts to ajract the youth into agriculture, 540 youth trainees and students from various terGary insGtuGons were sent to Israel for an 11-month paid internship to gain pracGcal experience in modern farming pracGces. The young beneficiaries have been assisted to set up their own farm enterprises.
D. Rearing for Food and Jobs
Another area for development in Africa’s Agricultural Sector is the Livestock sub- sector which plays a significant role in the provision of proteins in our food which is critical to the health of the continent.
To this end, under my leadership, the Ministry created a Poultry Development Authority to equip and promote growth in the industry.
Under my watch, Ghana’s Veterinary Services have seen substantial improvements. Works done included the installaGon of new laboratories, re-equippment of old ones and recruitment of 500 addiGonal Veterinary personnel.
My tenure also saw substanGal expansion of soya bean producGon and support to enhance local meat processing.
A key industry whose key challenges are yet to be fully implemented in Ghana is the Poultry Industry. Africa’s Poultry industry sGll faces various challenges, key amongst them is the high cost of feed and high importation of poultry products unto the market. There is a double-edged solution to this. The first is to regulate the importaGon of Chicken and other meat products and secondly, to address the cost of feed. This will be tackled as a major responsibility of the incoming Grain Development Authority – GDA, which I will speak on later.
In addition, when seasonal prices rise, various intervenGons should be made to increase producGon in other areas of the Livestock sub-sector.
E. Agricultural mechanization
Agricultural policy must be driven by evidence. If Agriculture can lead Africa’s economic growth, it is necessary for governments to partner with the private sector to make significant investments into Big data and Technology for precise and evidence-based decision making which gives farmers the ability to use inputs more effecGvely and to increase productivity. It is essenGal that all actors in the value chain are trained to access the benefits of data for decision making. This further provides opportunities to empower the youth and create new jobs.
Ghana’s Ministry of Food and Agriculture since 2017, have received and distributed a total of 12,200 pieces of agricultural machinery and equipment at 40% subsidy to farmers. The machinery includes tractors, harvesters, irrigaGon equipment, food processing and post-harvest management equipment. AddiGonally, a tractor assembling plant is being established near Ejisu in the AshanG Region of Ghana.
Processes have been concluded to provide a facility to import USD$150 million worth of farm and agro-processing machinery. Shipments are expected in Ghana in the course of this year 2023.
Of the machinery so far received, 32 District Assemblies and selected private sector operators have benefijed from a scheme to create Agricultural Mechanism Centres and provide hiring Services to both small and large scale farmers.
F. Create Legal Environment & Focus institutions for Agriculture to thrive
Mr. Chairman, it is criGcal to secure the enabling legal framework and interventions for Agriculture in Africa to thrive. Apart from the Tree Crop Development Authority menGoned earlier, I have led the creation of other institutions to drive the gains made so far in Ghana’s Agricultural Sector as follows ;
The Grains Development Authority
Under my leadership, a Bill was prepared and submitted to Ghana’s Parliament for the establishment of the Grains Development Authority (GDA). This Bill seeks to amend the Grains Development Authority Law, 1970 (Act 324). The GDA will be a regulatory body for the grains sub-sector, responsible for its Research and Development promoGon, ProducGon, MarkeGng, and Exports.
Another key role of the incoming Grain Development Authority is to make all necessary intervenGons in the Poultry industry to enhance local producGon and costs as well as protect the local industry. The GDA will purchase grains at the time of harvest when the prices are low, store the grains and release them to the poultry farmers and other stakeholders in the value Chain.
Horticultural & Poultry Development Authority
Also in the pipeline are a draft Cabinet Memoranda for the establishment of the Horticultural Development Authority and the Poultry Development Authority to give special focus to these sub-sectors.
Agricultural credit
The Ministry also initiated a Memorandum proposing legislation requiring all commercial banks to increase loanable funds to Agriculture and its value chains. This document was submitted to Cabinet for approval and onward submission to Parliament. The legislation seeks to address the acute shortage of financial credit to stakeholders in the Agricultural value chain in Ghana. - INVEST IN WOMEN IN AGRICULTURE
Mr. Chairman, may I seek your indulgence to present to this audience that, the global and conGnental goal to achieving equality, equity and inclusion for all women is a critical step for the economic empowerment of all African Women in all sectors of the economy, including Agriculture.
The contribution of women in Agriculture is extensive and includes the roles of providing labour for weeding, planGng, harvesGng, processing and marketing. This accounts for up to 70% of food crop producGon across the conGnent, and in the case of Ghana, they contribute to over 70% of its food crop production. Yet, many women across the continent involved in farming are plagued with issues of illiteracy, lack of knowledge and/or appreciaGon of technology, land acquisiGon and ownership issues, amongst others. It is important for African governments to prioriGse these issues and invest in women. - CONCLUSION
In conclusion, irrespective of its limited financial resources coupled with the global crises brought about by Covid 19, Russia-Ukraine war, climate change, amongst others, Ghana has improved its food security index and made food available to all. This has transformed the country into the breadbasket of West Africa and makes it a model for other African countries to emulate in terms of adopting new policy directions for economic transformation.
The recent experiences from Ghana clearly indicate that prioritizing public resources to promote agriculture in general and the interest of smallholdings can yield very positive results in the effort to transform the Agricultural Sector in African economies.
These positive impacts open up new investment opportunities in agro – processing and other businesses down the value chain. Serving the burgeoning domestic urban and export markets should generate the foreign exchange and domestic revenues needed to fund industry, education, health, roads and other infrastructure. Ghana is ready to receive your investment in this era of our Agricultural transformation.
I strongly believe that prioriGsing agriculture is the way for Africa, to achieve the needed accelerated growth in the other sectors of the economy, including Industry, health, educaGon, infrastructure, amongst other and create the needed jobs for our people.
Thank you for your time.
Source:Mybrytfmonline.com
