Ghana Must Abandon “Peasant Agriculture” to End $3.5 Billion Food Import Bill, Finance Minister Says

Ghana’s Finance Minister has issued a blunt assessment of the country’s agricultural model, declaring that smallholder farming cannot resolve the nation’s deepening food security crisis as he unveiled ambitious plans to commercialise production and halt the drain of billions of dollars on imports.

Dr Cassiel Ato Forson, speaking after presenting the 2027 Budget to Parliament on Thursday, said Ghana can no longer sustain an annual food import bill of approximately US$3.5 billion, arguing that the country’s land, water and youthful population offer a ready foundation for industrial-scale agriculture.

“The current agriculture, peasant agriculture, cannot solve the problems,” Dr Forson said in an interview. “We spend about 3.5 billion United States dollars yearly to bring foodstuffs into our country. It cannot continue.”

The minister’s remarks signal a significant policy shift under the government’s broader “New Economy Programme,” a four-year, US$10 billion transformation agenda that allocates a substantial US$3 billion to commercial agriculture . The programme is designed to be self-financing, drawing on retained primary surplus and enhanced revenue measures rather than fresh external borrowing .

Poultry and Crop Integration Targeted

Dr Forson singled out the poultry sector as a stark example of missed domestic opportunity, noting that Ghana spends roughly US$200 million annually on chicken imports. He questioned why the country could not deploy its land to grow soybean and maize to feed a domestic poultry industry.

“Why can’t we use our land to grow soybean and maize to feed the poultry industry?” he asked, pointing to the disconnect between crop production and livestock feed needs .

The government’s agricultural pillar targets eight integrated industries: rice, sugar, poultry, maize and soya feed, aquaculture, oil palm, vegetables, and cocoa value addition . The minister also flagged the reliance on Burkina Faso for onions and tomatoes, identifying the Pwalugu area as a potential hub for vegetable supply solutions.

The push for commercialisation follows recent policy moves aimed at protecting local farmers. Just days before the budget, Dr Forson announced plans to require rice importers to purchase a portion of their intended import volumes from local farmers before receiving import permits—a measure designed to create a reliable market for domestic producers .

Cocoa Processing: From Beans to Finished Goods

Beyond food staples, the minister outlined a radical shift in the cocoa sector, targeting 50 per cent local processing by 2028 and 100 per cent by 2030, effectively ending the export of raw beans.

“We are not saying don’t come and buy our cocoa beans, but if you are a company out there, come and buy our cocoa beans, but add value here in Ghana,” Dr Forson said .

The government intends to expand domestic capacity beyond primary grinding to include cocoa liquor, butter, cake, powder, chocolate, and cosmetics. A new Cocoa Board Act already before Parliament contains a mandatory local-processing requirement, with a legislative instrument to set the timeline for full processing by 2030 .

In a significant development, Dr Forson disclosed that Nigerian industrialist Aliko Dangote has expressed interest in establishing Ghana as a cocoa-processing hub, with discussions underway over a proposed contract involving 500,000 metric tonnes of cocoa.

“Dangote has reached out to use Ghana as a hub to process cocoa locally,” the minister said, adding that the terms were still being examined and no contract had been signed .

Background: A Sector Under Strain

Ghana’s agricultural sector has long been characterised by smallholder production, which accounts for the vast majority of output but suffers from low productivity, limited irrigation, and vulnerability to climate shocks. The Peasant Farmers Association of Ghana has previously criticised successive budgets for allocating far below the 10 per cent of expenditure target set under the Maputo Declaration, arguing that inadequate investment perpetuates import dependence .

The 2027 budget’s emphasis on commercial agriculture represents a departure from that trajectory, though questions remain about implementation capacity and the timeline for delivering irrigation infrastructure and processing facilities. The Pwalugu tomato factory rehabilitation and the Tamne irrigation dam completion are among the projects intended to support year-round production in the Upper East Region .

Dr Forson’s remarks also come against a backdrop of fiscal consolidation, with the government projecting a 2027 deficit of 3.6 per cent of GDP and announcing no new taxes. The agricultural transformation agenda will therefore depend heavily on reallocating existing resources and attracting private investment—including from continental players like Dangote—rather than relying on expanded public spending .

For now, the minister’s message is unequivocal: the era of subsistence-level agriculture as the backbone of national food policy is over.

“All we need to do is modernise agriculture,” he said .