By 
Ghana’s agriculture sector remains a vital component of its economy, although its relative contribution to GDP has seen some shifts. It continues to be predominantly characterised by subsistence farming, with a notable focus on the crop subsector. Cocoa is among the most important earners for the Ghanaian economy, and the sector has historically been the biggest employer in the economy since independence. In the first three quarters of 2024, the agriculture sector grew by 4.6%, with the crops sub-sector growing by 4.6% and the livestock sub-sector by 4.7%, indicating sustained modest growth.
CROP SUBSECTOR
The agriculture sector is dominated by food crop production for local consumption as well as export. Ghana continues to be a significant producer of staple crops. In 2023, cassava production in Ghana was projected to reach 20.87 million metric tons (MT), a 1% increase on the previous year, maintaining its immense agricultural significance. The country also saw continued growth in yam production; in 2022 it produced 10.72 million MT, a 4.3% increase from the previous year, solidifying its position as a major global producer. The country cultivates various yam varieties, including the renowned pona variety, cherished for its unique taste and quality.
In addition to cassava and yam, Ghana boasts substantial production levels of plantain, maize, rice paddy, oil palm, oranges, pineapples, groundnuts, and coconuts, contributing to the nation’s agricultural diversity and food security. Despite its robust agricultural output, Ghana faces challenges meeting domestic demand, leading to significant food crop importation. In 2023, Ghana imported 516,104 MT of rice, valued at approximately US$286.3 million. The nation also continues to import substantial amounts of wheat, soybeans, shea nut, malt, and various fruits and vegetables to meet local demand.
Ghana has produced cocoa since 1879 when Tetteh Quashie introduced Amelonada cocoa beans from Fernando Po. The country’s favourable climate, characterised by adequate rainfall, sunshine, humidity, and conducive temperatures, provides an ideal environment for cocoa tree cultivation. Ghana remains the second-largest producer of cocoa globally, with an estimated export volume of 800,000 tonnes for the 2023–24 season. The cocoa sector continues to be a critical source of foreign exchange.Livestock
In 2019, the government launched the ‘Rearing for Food and Jobs’ module of the Planting for Food and Jobs initiative. This has led to notable production increases across various livestock categories. Despite this growth, Ghana continues to heavily rely on meat imports, particularly chicken. In 2023, the value of poultry meat and edible offal imports to Ghana totalled US$173 million, constituting a significant portion of total meat imports. Ghana also imports cattle offal, beef, and veal to supplement local cattle production. Efforts are ongoing to strengthen agricultural value chains, including livestock, to reduce import dependence.
Forestry
Ghana’s forested land area has seen some changes. Trees outside forests reduced from 91,029 km² in 2017 to 80,658 km² in 2023. However, trees inside forests increased from 24,754 km² to 25,478 km² over the same period. The overall decline in trees outside forests is attributed to the expansion of rangeland, built-up areas, and croplands. Exports have risen, however and in 2024, Ghana earned €123.4 million in revenue from the export of around 273,000 m3 of timber and timber products. The exports comprised a range of items, including air-dried and kiln-dried lumber, billets, plywood, and rotary veneer. This upward trend underscores the significant contribution of timber exports to the country’s foreign exchange reserves and overall economic development, despite some fluctuations in specific product categories and markets.
Fisheries
Fish accounts for about 60% of the nation’s protein needs, with marine fishing being a primary source. However, the decline in fish production from both marine and inland sources, mainly due to uncontrolled artisanal practices, persists. According to 2023 data, annual marine fish production increased by 12.5% to 425,424 MT, while inland fish production saw a slight decrease of 2.8% to 142,583 MT. Aquaculture production, which has seen growth since 2018, experienced a 12.5% decrease in 2023, reaching 116,108 MT. Ghana continues to face a deficit in fish production, with fish imports in 2023 at 84,828 MT, though this was a significant decrease from 2022.
GHANA COMMODITY EXCHANGE (GCX)
In 2018, the GCX was established to facilitate links between producers of agricultural commodities and buyers. The GCX continues to operate through segregated trading and warehousing storage operations, utilising an electronic warehouse receipt system backed by collateral management services. Commodities traded on the exchange include maize, soybean, sorghum, sesame, and rice. The GCX plays a crucial role in improving market access and price discovery for farmers.
DEMAND PROJECTIONS
Between 2021 and 2050, Ghana’s population is projected to increase from 30.8 million to 52.5 million, representing a significant Compound Annual Growth Rate (CAGR). This growth, combined with a rising middle class, is anticipated to drive a substantial increase in demand for food. Urbanisation in Ghana is expected to rise significantly, with the urban population projected to reach 72.3% by 2050 (from 51.9% currently). In addition, there is expected to be a substantial rise in average household personal disposable income. This economic advancement will likely result in greater consumer spending on food and other goods and services, further boosting food demand in the country. These demographic and economic shifts underscore the continued need for robust investment and sustainable development in Ghana’s agriculture sector.
SECTOR OPPORTUNITIES
- Advancement in the development of climate-resistant seeds and adaptable technology.
- Manufacturing of machinery tailored for the production of poultry and fish feed.
- Scaling up shea butter processing capacity to accommodate increasing production and meet rising demand.
- Implementation of modern technology in aquaculture to reduce costs and increase output.
- Expansion of rice production and processing to meet growing local demand, supported by targeted incentives.
- Investment in cocoa processing factories to capitalise on the availability of cocoa beans, allowing for value addition and export of processed cocoa products.
INVESTMENT INCENTIVES
- Ghana has a youthful population; about 67% of the labour force are 15 to 64 years of age.
- The food and agriculture industry offers several incentives for companies and ready-to-go investors, including a 5- to 10-year tax holiday for companies in the agriculture sector; concessionary corporate income tax rates; and an option to carry forward losses for up to five years.
- The Model Lease Agreement (MLA) drafted by the Ministry of Food and Agriculture helps to protect the interest of large-scale farmers.
- Under the Export Marketing and Quality Awareness Project, significant investments have been made to boost access to farming communities through improvements to road and transport infrastructure.
- There has been a significant improvement in warehousing capacity at the airport and in public and private facilities around the country.
Agriculture is a major source of employment and export earnings in Ghana. Between 2012 and 2021, agriculture accounted for 21% of Ghana’s GDP and employed 41% of the workforce – including almost 67% of the rural population as of 2019. The value of agricultural exports averaged US$3.23 billion in 2012–21, or 24% of total export earnings. Ghana is the second-largest cocoa bean producer in the world; cocoa and related products account for 74% of its agricultural exports, and cocoa beans alone for 56%. At the same time, the country relies heavily on imports of certain key food items, especially cereals.
Agriculture has grown robustly in recent years, even during the pandemic, but future growth needs modern inputs, services, and infrastructure. The agricultural sector’s real value added grew by an average of 4.5% per year between 2012 and 2021, owing to both intensification and extensification efforts. As the COVID-19 shock disrupted Ghana’s economy in 2020, the value-added growth rate in agriculture rose from 4.7% in 2019 to 7.3% in 2020 while suffering major drops in industry and services. However, further agricultural development is stifled by significant challenges, especially around the supply, demand, and adequate use of modern inputs (such as agrochemicals and certified seeds) and complementary services (such as extension, credit, and mechanisation), as well as the absence of key infrastructure (for example, for irrigation, transport, and storage).
Source: Building the Foundations for a Resilient and Equitable Fiscal Policy (World Bank Group);
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