Agriculture Policy Environment

Agriculture Policy Environment

The policy on agriculture is encapsulated among various government agencies such as the National Development Planning Commission (NDPC), the Ghana Investment Promotion Centre (GIPC), the Lands Commission, the Ministry of Finance (MoF), the Ministry of Trade and Industry (MoTI) and the Ministry of Food and Agriculture (MoFA).

The Ghana Shared Growth and Development Agenda (GSGDA) II, 2014-2017, is the fifth in the series of medium-term national development policy frameworks prepared over the past two decades. To ensure continuity in overall national development,  the GSGDA II  builds on the predecessor framework, GSGDA I (2010-2013), drawing lessons from its successes and challenges to enhance overall development management and the transformation agenda that the programme represents.

The GSGDA 2011 – 2013 sought to improve the wellbeing of Ghana’s poor, most of which reside in rural areas and are dependent on agriculture for their primary livelihoods. Priority sectors for the US$24 billion of proposed investments envisaged in the GSGDA are infrastructure (with 54 percent of planned expenditures, of which 15 percent is oil and gas development), health and education (25 percent) and enhanced competitiveness of the private sector (8 percent). Modernizing agriculture attracts 4 percent of investment.

Ghana’s agricultural sector is shaped by the Government of Ghana’s agricultural strategy—the Food and Agriculture Sector Development Policy (FASDEP II)—and the implementation plan and investment framework for the strategy—the Medium-Term Agriculture Sector Investment Plan (METASIP). Together, these two documents outline the Government’s priority themes with respect to sectoral growth: (1) food security and emergency preparedness; (2) increased growth in incomes; (3) increased competitiveness and enhanced integration into domestic and international markets; (4) sustainable management of land and environment; (5) science and technology applied in food and agriculture development; and (6) improved institutional coordination. The policy principles espoused in FASDEP include pro-poor focus, attention to regional balance between northern and southern Ghana, gender inclusion, and environmental and social sustainability.

In addition, the Government’s Private Sector Development Strategy (PSDS II) has significant influence over the growth of the agricultural sector. PSDS II’s objectives are to improve the productivity and efficiency of Ghana’s economy, build a thriving private sector that creates jobs and enhances livelihoods, and improve Ghana’s competitiveness internationally. Specifically, PSDS II aims to increase rural incomes by 20%, particularly in northern and central Ghana, through more productive agriculture. Increased agriculture productivity and efficiency in value chains are identified as key outputs toward developing a more robust private sector.