The Ghanaian economy spent over GH¢6.8 billion (equivalent to US$560 million at current market rate) importing rice, a grain that can be produced locally, last year. While total rice consumption stood at 1.4 million metric tonnes in 2022, imports valued at US$560 million, accounting for 800,000 metric tonnes (mt) of the consumption figure, with domestic production catering for the remaining demand – according to data from IDH Sustainable Trade, a foundation headquartered in The Netherlands.
Ghana imports more than 60 per cent of its rice needs, with dire economic consequences. Domestic consumption is supplemented by imports, primarily from Thailand, Vietnam and India. The government believes that the negative narrative in the rice sector could only be changed with the injection of massive capital by big players from the private sector.
The 2023 Budget espoused the decision of the government to boost the economy through import substitution with efforts to promote exports and expand the productive capacity in the real sector of the economy, and actively encourage the consumption of locally produced rice, poultry, vegetable oils, fruit juices and ceramic tiles, among others.
Yesterday, The Chronicle carried a story about Vice President Mahamudu Bawumia praising the Jospong Group, a Ghanaian conglomerate, and Komptec, an Austrian company, for signing a 30 million Euro contract for rice production in Ghana. Under the agreement, Komptec will support the Jospong Group rice project with machinery and technology.
This is a very great initiative by the Jospong Group and will go a long way to help cut down importation of rice. This is, because the high dependence on imports of food staples like rice, despite vast untapped domestic potential, comes with ramifications for the cedi and local job prospects. When the project is actualised, the pressure on foreign exchange to import rice will reduce, since the product will be planted, harvested, and bagged in the country, which will create employment for the youth as well.
Per statistics, rice has become the second staple food consumed in the country, after maize, growing at an average annual rate of 9 percent. Though the figures depict high potential for growth in local production, challenges, including access to finance, skilled labour, shortage of combine harvesters, milling machines and storage infrastructure, continuously threaten the crop’s production. Global developments have amplified protection and distortions of supply chains, with ramifications for economies in the continent, including Ghana.
The Chronicle lauds the Jospong Group for venturing into large-scale mechanised rice production, following government’s effort to increase rice production in the country. As rice imports surge in Ghana, increasing rice production and yields has become a priority and the Jospong Group initiative must be embraced by all Ghanaians.
