Editorial: Agri-business strategy indispensable to achieving 24-hour economy initiative

President John Dramani Mahama has announced the removal of import duties on agricultural processing machinery in a bid to lower costs and accelerate investment in local agri-processing.

He made this all-important announcement at the inaugural National Agribusiness Dialogue in Accra, where he said the move is aimed at improving access to modern technology, boosting efficiency in the agriculture value chain and encouraging greater private sector participation.

“In the short-term, import duties on agri-processing machinery will be waived to reduce costs and incentivise local processing. This will enhance efficiency, improve technology uptake and stimulate private sector investment.”

The medium- to long-term strategy will focus on strengthening domestic capacity for the fabrication and supply of agri-processing equipment through targetted support to Ghana’s local manufacturing sector.

Although agriculture is a key sector in the local economy, contributing roughly 20 percent of gross domestic product (GDP) and employing more than a third of the workforce, limited processing capacity and infrastructure gaps continue to hamper growth and lead to post-harvest losses.

In line with government’s vision for industrial transformation, the president said steps are being taken to reposition the economy from a raw commodity base to one driven by value addition and exports.

“Our commitment to agri-business is evident in the recent realignment of the Ministry of Trade and Industry into the Ministry of Trade, Agri-Business and Industry. It is a deliberate policy shift intended to place agri-business at the heart of our industrial strategy,” he stated.

With the global agri-business market projected to reach between US$4.4trillion and                           US$5.8trillion by 2033, President Mahama said Ghana must strategically position itself to claim a competitive share by leveraging its agricultural potential.

“This is indispensable to achieving full-scale implementation of our 24-hour economy initiative. Our agri-business strategy must be integrated with industrial policy, logistics and export development if we are to fully realise our national potential.”

He disclosed that the Ministry of Trade, Agri-Business and Industry is spearheading development of a national agri-business policy framework. “It will focus not just on value addition but also high-quality raw material production, processing standards, competitiveness and supply chain resilience.”

The policy aims to position local agri-businesses to compete globally while creating sustainable and decent jobs.

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