Gov’t unveils plan to stabilize cedi, boost agriculture and value addition

The Government has outlined a series of targeted interventions aimed at transforming Ghana’s agricultural sector, with a core focus on stabilising the cedi to reduce production costs for farmers.

Dr. Peter Boamah Otokunor, Director of Presidential Initiatives on Agriculture and Agribusiness, detailed the plan during an appearance on the GTV Breakfast Show. He emphasised that the high dependency on imported farm inputs and machinery makes macroeconomic stability essential for the sector’s growth.

“Stabilising the cedi and broader macroeconomic indicators is critical to reducing the cost of production for our farmers,” Dr. Otokunor stated.

Key initiatives announced include a GH₵200 million allocation to the National Buffer Stock Company in the 2026 budget. This funding comes with a directive that all food supplied to schools under government programmes must be sourced directly from local smallholder farmers—a move designed to secure reliable markets and enhance food security.

Dr. Otokunor highlighted agro-processing as a central pillar of the strategy, revealing that Ghana is positioning itself as an ethanol production hub, with maize now being processed into ethanol. He argued that adding value to raw produce is the most sustainable path to preserving jobs and lowering food prices.

“When the cost of production comes down, you can reduce the cost of your products and still maintain jobs,” he explained, citing a personal example where the price of a bag of milled soya beans dropped from GH₵550 in 2024 to GH₵320 currently due to improved production systems.

Further plans involve the creation of ‘Youth Agriculture Estates,’ where young people will live and work on farms to acquire modern skills. The government also intends to establish 24-hour markets in every district to facilitate round-the-clock trading and improve access to global markets for local produce.

On infrastructure, Dr. Otokunor said the ‘Irrigation for Wealth’ programme is being scaled up to support year-round farming and boost productivity.

These interventions collectively signal the government’s intent to shift agriculture from subsistence to a more industrialised, market-driven sector anchored by value addition and youth involvement.