Agriculture
Ghana remains a major importer of food products, with imports of agricultural and related products estimated to have reached $1.9 billion in 2021.
With this trend to turn the fortune in promoting the drive of commercial farming in Ghana to cut-down huge volume of imports LFF Group of Company’s Agro-business project in the Volta region is to use the platform to incorporate the youth in Agriculture production in the region.
Food and agricultural imports will continue to grow as Ghana’s underdeveloped food processing sector is unable to meet increasing demand.
Food imports mostly comprise bulk, intermediate, and consumer-oriented commodities such as rice, wheat, soybean meal, and poultry. U.S. exports of agricultural and related products to Ghana in 2021 were $156.6 million, an increase of about 48.0 percent over the previous year’s value ($105.6 million).
In 2021, Ghana imported about $1.9 billion in agricultural and related products. Imports from the United States ($156.6 million) constituted about eight percent of the total import value.
Ghana is strategically located and has over the years been marketed to the rest of the world as the gateway to Africa.
Currently pursuing an agenda to make its seaports very competitive along the coasts of West Africa, Ghana provides a good transshipment point for food and beverages meant for the greater West Africa market. U.S. grocery items entering Ghana can be re-exported to neighboring West African countries (a market of over 400 million people).
With an estimated population of roughly 31 million, Ghana’s market remains relatively advanced compared to others in Africa, despite the significant dip in economic growth recorded in recent years, mainly because of the impact of the COVID-19 pandemic.
Rapid urbanization and gains in economic growth continue to stimulate an emerging middle class who embrace Western brands, products, and lifestyles. Ghana Statistical Service reported that Ghana’s GDP grew by 5.4 percent in 2021, compared to the 0.5 percent growth recorded in 2020.
According to the Economist Intelligent Unit, Ghana’s real GDP growth will strengthen in 2022, before slowing in 2023-24, then pick up again in 2025-26. Most consumers in Ghana are price sensitive, but quality is never overlooked, and the growing middle class values premium products.
There is high demand for imported food products, especially intermediate, and consumer-ready products, due to limited selection of products provided by the underdeveloped domestic agricultural and food-processing sector.
Although U.S. exports to Ghana had mostly been rice, poultry, and wheat, exports of U.S. consumer-oriented food products reached an all-time high of $127.2 million in 2021.