The Minister for Finance, Dr. Mohammed Amin Adam, has announced a mobilisation of $500 million (approximately GH₵8 billion) to address an impending food crisis that threatens the nation’s economic stability.
The minister was speaking at a press briefing at the Ministry of Information in Accra on Monday, August 26, 2024.
This comes in the wake of severe agricultural losses that have left over 928,523 farmers in the northern regions grappling with a staggering GH₵3.5 billion in investment losses.
In response to this growing crisis, Dr. Amin Adam revealed that government is taking swift and decisive action.
Of the $500 million needed to combat the crisis, he revealed that the government has already secured $160 million (GH₵2.5 billion) from the national budget, primarily through contingency funds and budgetary realignments.
Additionally, he added that the development partners, led by the World Bank, have pledged $155 million (GH₵2.4 billion) to support critical interventions such as food imports, cash transfers and other relief measures.
He highlighted the importance of these funds in stabilising the situation and preventing further deterioration of the country’s food security.
The Minister also assured the public of transparency and accountability, noting that a technical task force has been established to oversee the allocation and distribution of resources.
The Minister for Food and Agriculture, Dr. Bryan Acheampong, described the situation of the dry spell as one of the worst in recent history, emphasising that key staple crops such as maize, sorghum and millet have been particularly hard-hit.
The dry spell has affected eight (8) regions of the country (Northern, Upper East, North East, Savannah, Upper West, Bono, Bono East and Oti).
He highlighted the devastating impact on both large-scale and smallholder farmers, many of whom have seen their entire season’s efforts wiped out.
The minister revealed that 928,523 farmers across the Northern Region, who are responsible for cropping a total of 1,857,000 hectares are at significant risk due to the drought.
These farmers, he said, who have heavily invested in their crops, stand to lose an estimated GH₵7.4 billion if there is a total crop failure this season.
The potential revenue loss from this disaster is even more staggering, estimated at GH₵22.2 billion, which accounts for 10% of Ghana’s agriculture GDP of GH₵220 billion.
Meanwhile, the affected farmers have already incurred devastating financial losses, with an estimated GH₵3.5 billion in investments lost to the drought.
This loss is coupled with a potential revenue shortfall of GH₵10.4 billion, which will undoubtedly have far-reaching implications for the regional and national economies.
He warned that if the current conditions persist, the country could face a significant food crisis, further endangering food security and exacerbating the economic fallout.
He explained that many of the affected farmers are subsistence farmers who rely on their harvests for food and the loss of crops has left many families facing hunger and food insecurity.
The minister bemoaned the five northern regions are located near our neighbouring countries that are experiencing some forms of extremism.
“There is a significant risk of the spread of extremism if the youth become unemployed, idle, and hungry and feel a sense of hopelessness in the absence of any intervention from the government,” the minister indicated.
The government of Ghana has initiated several interventions aimed at mitigating the impact of the dry spell and preventing a total collapse of the agricultural sector in the country.
The government, with immediate effect, is placing a ban on the export of grains, including maize, rice, and soybeans, until the situation normalized.
This measure, according to Mr. Acheampong, is essential to ensuring the availability of these critical crops on the domestic market.
Additionally, “the government is planning to expand irrigation projects in the most affected areas.
By reducing the reliance on rain-fed agriculture, these projects aim to provide a more reliable water supply for crops, thereby improving resilience to future dry spells,” he added.
One of the key strategies being implemented, the minister added, is the distribution of drought-resistant seeds to affected farmers.
This measure, he said, is intended to help farmers salvage what remains of the current planting season and ensure that some level of crop production can still be achieved.
To ensure the effective and transparent utilization of these funds, the minister said the government has established a technical task force that will oversee the allocation and distribution of resources.
This task force, comprising experts from various sectors, will be responsible for coordinating the relief efforts, monitoring the implementation of projects and ensuring that the funds are used for their intended purposes.
Mr. Acheampong assured the public that the government is committed to transparency and accountability in managing the crisis.
