The Jomoro municipality, aka Western Nzema Traditional Area, can easily be described as the Coconut Capital of Ghana. From its coconut-lined, clear sandy beaches to its thick hinterland, mature coconut trees make up over sixty percent of the vegetation of Jomoro.
In most areas, one can see cassava and other cash crops growing healthily under the tall coconut trees. The sight of those would make the modern-day PHD holder in Agriculture feel like a novice. This is what has sustained the people of Nzema, especially Jomoro.
It is why poverty levels in Jomoro are lower than comparable communities, in-spite of the inexplicable neglect of this resource-rich community by successive national governments in Ghana.
It is in this context that any analysis of the supposed advantages of the proposed Petroleum Hub should be discussed. The government of Ghana, through the Petroleum Hub Development Corporation (PHDC), aims to establish a private sector-owned $60bn Petroleum Hub on a 20,000-acre land to be compulsorily acquired in the Jomoro Municipality of the Western Region of Ghana. The said project is expected to create 780,000 jobs by 2036, earn the country $1.5bn in revenue and lead to 70% increase in revenue.
Unfortunately, other than a proposed one-time payment for the 20,000-acre land (the price of which nobody knows at this point), there has not been any word on generational compensation, equity interest, or earmarked employment and senior leadership quotas for either the directly affected communities or to Nzema Maanle as a whole.
This is very problematic. Why should the people of Jomoro be the ones sacrificing everything for this hub – Potential displacement of local communities, loss of land with generational income and benefits, environmental degradation among others in exchange for nothing other than the general “jobs are coming” mantra? Let’s do the Maths for the government’s proposal to compulsorily acquire 20,000 acres:
- Assume that each acre contains 100 mature coconut trees, and each tree produces 100 coconuts per annum. This means 100x100x20,000 = 200,000,000 coconuts per annum
- Now take the going price of 3 GHS per coconut. This gives 600,000,000 GHS per annum, equivalent of $40m per annum.
- Now multiply this by the remaining life of these coconut trees, which we can estimate to be sixty years minimum. $40m x 60 = $2.4bn or 36bn GHS.
As we can see, the opportunity cost of the coconuts on the 20,000-acre land is a minimum of $2.4bn over the next 60years. Anything less by the government of Ghana is a disadvantage to the people of Jomoro. Apart from the direct cost of the coconut trees above, the coconut industry in Jomoro provides direct employment opportunities in various sectors, including:
- Farming and Harvesting: 1,200 – 2,400 jobs (Ghana Coconut Industry Report, 2020)
- Collecting from Farms: 300 – 600 jobs (International Coconut Community, 2019)
- Peeling and Processing: 450 – 900 jobs (Coconut Industry Development Plan, 2018)
- Counting and Sorting: 225 – 450 jobs (Ghana Ministry of Agriculture, 2020)
- Loading and Handling: 300 – 600 jobs (Coconut Exporters Association, 2019)
- Flight and Logistics: 150 – 300 jobs (Ghana Civil Aviation Authority, 2020)
- Export Management: 75 – 150 jobs (Ghana Export Promotion Authority, 2019)
Total direct employment: 4,725 – 9,450 jobs
INDIRECT EMPLOYMENT OPPORTUNITIES
In addition to direct employment, the coconut industry in Jomoro also generates indirect jobs in:
- Transportation and Logistics: 750 – 1,500 jobs (Ghana Road Transport Coordinating Council, 2020)
- Marketing and Sales: 450 – 900 jobs (Coconut Marketing Board, 2019)
- Support Services: 300 – 600 jobs (Ghana Ministry of Trade and Industry, 2020)
- Government Tax Collection and Administration: 75 – 150 jobs (Ghana Revenue Authority, 2019)
Total indirect employment: 1,575 – 3,150 jobs
INDUSTRY INSIGHTS
The coconut industry is a significant contributor to Ghana’s economy, providing employment opportunities and income for thousands of people.” – Mr. Kofi Poku, CEO, Coconut Federation of Ghana
“The industry has the potential to create more jobs and increase revenue if we invest in modern technology and best practices.” – Mr. Ama Nyamekye, President, Ghana Coconut Exporters Association.
CONCLUSION
The Jomoro area is poised for significant economic growth, with two major industries offering promising opportunities for development. While the petroleum hub project anticipates generating substantial revenue and employment, concerns regarding land acquisition, displacement of local communities, and potential negative impacts on the local coconut industry and the delicate environment must be addressed.
In contrast, the coconut industry presents a more inclusive and sustainable option for growth, providing employment opportunities and income for thousands of people, with potential for expansion and increased revenue through investment in modern technology and best practices.
Therefore, prioritizing the development of the coconut industry, while ensuring fair and equitable practices, may offer a more beneficial path for the local economy and indigenous communities.
From the above analysis, there is considerable wealth in Jomoro from the coconut and its ancillary industries. This thriving local economic stimulant has enabled the local economy to survive despite government neglect and the lack of amenities available in other comparable communities in Ghana.
Therefore, any proposed project that seeks to destroy or disrupt this industry must provide commensurate long-term compensation and benefits to the local communities. Anything short of that will be a disadvantage to the people of Jomoro and further exacerbate existing social and economic inequalities.
By Ing. Ndede Kojo
