The government remains committed and on course with initiatives geared toward promoting food sufficiency and boosting agricultural development under the GhanaCARES programme, Minister of Finance Ken Ofori-Atta has said.

During the 2023 mid-year budget presentation, he highlighted the role of the Economic Enclaves Project (EEP), among other efforts, in addressing the rising concerns of inflation and food insecurity while creating opportunities for the country’s youth and private sector.

Speaking of the EEP – a 10,000-acre mixed-use space to boost commercial farming, which aims to enhance productivity in rice, tomato, maize, soya, vegetables, and poultry, complementing existing the government initiatives, the minister said: “I can report that efforts toward promoting commercial agriculture, building technological capability, and advancing digitalisation under the GhanaCARES programme are on track”.

Mr. Ofori-Atta explained that the government has so far taken significant steps to enhance production and value-addition in these enclaves by providing ancillary services like housing, training facilities, irrigation canals, farm roads and electricity, adding that the response from the private sector has been encouraging.

At the time of his remarks, about ten medium and large-scale enterprises had expressed interest in playing diverse roles in the EEP, ranging from anchor farmers to providing machine and equipment services in Kasunya in the Volta Region.

Additionally, in partnership with the National Service Scheme, the government is developing about 20,000 acres of land in Sekyere Kumawu in the Ashanti Region to accelerate the production of crops like maize, tomato, groundnuts, and animal products.

By the end of 2023, the government aims to have fully seeded 7,500 acres of rice in Kasunya, with qualified private sector entrepreneurs as anchor farmers, and engaged in value chain activities like rice milling and packaging. Furthermore, 1,500 acres of land in Kumawu and Banda in the Oti Region will be developed and seeded, with private sector partners playing a crucial role in these enclaves.

The significance of these efforts extends beyond economic gains, he added. At launch, the implementation of the EEP was envisioned to create approximately 200,000 jobs (105,000 direct and 95,000 indirect jobs) for unemployed youths, empowering them with training in good agronomic practices, group dynamics and entrepreneurship.

Mr. Ofori-Atta expressed his satisfaction with the response from the domestic private sector, stating: “It is gratifying to note that the domestic private sector has responded positively to the provision of these services”.

“With these efforts, we expect to gradually drive down the food component of inflation, create jobs for our youth, improve food security, and reduce the volatility on the forex market,” the minister added.

The EEP is anticipated to be a vital step toward improving food security in the country. In May 2023, prices of goods and services rose by 4.8 percent, marking the second consecutive monthly increase after a deflation observed in March.

The rise in prices was primarily driven by food inflation, which accounted for 52.9 percent of the overall inflation figure. Food inflation surged to 51.8 percent in May, up from 48.7 percent in April 2023. Non-food inflation stood at 34.6 percent, slightly lower than the previous month’s 35.4 percent.

The increase in food prices is mainly attributed to rising fertiliser costs since 2020, further exacerbated by Russia’s invasion of Ukraine. A bag of fertiliser now costs between GH¢400 and GH¢700, compared to GH¢250 and GH¢350 last year.

Food security has been described as a crucial indicator of socio-economic development, and its absence is often linked to poverty and inequality. The Quarterly Food Insecurity Report by the Ghana Statistical Services (GSS) in August 2022 revealed that 42 percent of the population (13 million out of 30.8 million people) were consuming low-quality food or reducing their food intake between April and June 2022.

Vast majority of those surveyed expressed inadequate access to food, worries about food availability, reduced food consumption, and instances of skipping meals. Additionally, approximately 6.4 million people are both food insecure and multi-dimensionally poor, the report noted.