Agriculture and Agro-processing - INVESTMENT OPPORTUNITY - iDiasporan

Agriculture and Agro-processing

by Ghana Investment Promotion Center

Support Our Business

  Follow   0 Likes

Description

Sector Overview

Agriculture in Ghana is recognized as the mainstay of the economy with a greater impact on poverty reduction than other sectors. It is also critical for rural development and associated cultural values, social stabilization, environmental sustainability and buffer during economic shocks and the sector currently employs about 48% of the total workforce.

The country is classified into three main agriculture zones. The forest vegetation zone consists of parts of Western, Eastern, Ashanti, Brong Ahafo and Volta Regions. The northern savannah vegetation zone includes the Upper East, Upper West and Northern Region while the coastal savannah includes mainly the Central, Greater Accra and parts of Volta Region.

The northern savannah zone is the largest agriculture zone. Most of the nation’s supply of rice, millet, sorghum, yam, tomatoes, cattle, sheep, goat and cotton are grown in the region. In recent times, mangoes, cotton and ostrich commercial farms are also gaining footholds in the northern zone.

The coastal savannah is notable for rice, maize, cassava, vegetables, sugar cane, mangoes and coconut cultivation as well as livestock rearing. Sweet potato and soybean crops are also viable in this agro–ecological zone, under irrigation. The lower part of this zone is drained by the River Volta and other streams and lagoons. These water resources present opportunities for fish farming (aquaculture).

In the forest zones where rainfall is very heavy, cocoa, coffee, oil palm, cashew, rubber, plantain, banana and citrus crops are mostly cultivated in these areas.

The major strengths of the agricultural sector include a diversity of commodities, well-endowed drainage basin, a well-established agricultural research system and a relative proximity to the European market.

The agriculture sector consists of four (4) main subsectors:

  • Crops: Cash crops, horticultural crops and tree crops.
  • Livestock: Ruminants , non-ruminants and poultry
  • Fisheries: Marine, inland and aquaculture
  • Forestry

 

Crop Production

Food production in Ghana for the past few years has shown an upward trend, thus increasing the country’s potential towards complete food self-sufficiency. 

Generally, the production levels of major crops increased with the exception of maize which reduced slightly. Maize production declined marginally by 0.15%. Whiles a number of factors may account for this decline, the high cost of agricultural inputs and poor weather conditions in some parts of the country were main suspected causes.

The production of roots and tuber crops such as cassava and cocoyam experienced slight increases (2.5% and 2.4% respectively) in 2014, and resulted in about 408 metric tonnes and 31 metric tonnes respectively. This increased production can be partly due to interventions of the Root and Tuber Improvement and Marketing Project (RTIMP) and the West African Agricultural Productivity Programme (WAAPP) through improved technology generation, dissemination and adoption.

Additionally, there is availability of market for root and tuber crops. For example, cassava is being used as a raw material in the brewery industry. In 2014, Guinness Ghana Limited (GGL) and Accra Brewery Limited (ABL) purchased a total of 801,946.32 metric tonnes of raw cassava at a value of GH¢1,593,680 from farmers in some selected districts.

 

Livestock Production

Demand for livestock products including poultry is increasing in the country. Factors accounting for this include population growth, increased urbanization, rising incomes and improved attitude toward the intake of protein. Livestock production is thus increasing in response to this growing demand. Meat and meat products available for consumption increased by 6.59% between 2012 and 2013.

However, in 2014 an average increase of 6.0% was recorded. Although this shows an appreciable increase in domestic meat production, the rate of increase is decreasing marginally (6.59% in 2013 and 6.0% in 2014). This increase has ultimately led to a reduction in meat imports. In 2013 import of meat and meat products reduced by 9.68% whereas in 2014 an impressive reduction of 39.7% was achieved over the previous year. The decrease in meat imported is reflected in the drastic reduction in meat available for consumption by up to 39.6%.

 

Fish Production

The fisheries sub-sector also contributes to the achievement of the country’s food security goals by providing high quality and affordable fish protein in the daily diet of many households. The sub-sector is estimated to contribute about 60% of the protein requirements of Ghanaians. Total fish produced in 2014 from all sources including captured (marine and inland) and cultured (aquaculture) was 413,077 metric tonnes as against total import of 145,910 metric tonnes in 2013.

 Local production contributed about 74% of the total fish needs of the country. Further analysis shows that, out of the total production in 2014, marine fisheries accounted for about 70%, inland fisheries 21% and aquaculture 9%.

 

Inland Fish Production

Inland fish production involves inland capture, cultured fisheries and aquaculture based fisheries. The main sources include; the Volta Lake, lagoons, reservoirs, irrigation dams and dug outs as well as other inland water bodies. The Volta Lake with a surface area of 8,480km2 and 5,200 km2 shoreline forms the backbone of the total inland captured fish production, as it contributes about 90% of the total production from the sub-sector.

 

Production of Cultured Fish

Cultured fish production is basically aquaculture production. This is usually obtained from cages, ponds, dams, dugouts and reservoirs. Aquaculture production has been on the rise since 2008. This was largely as a result of government’s strategy of investing in the aquaculture production. In line with the government’s intervention, Ministry of Fisheries and Aquaculture Development is developing a programme dubbed nucleus – out-grower and input support scheme to promote aquaculture. The implementation of the scheme will augment national fish production through aquaculture. Under the scheme, selected potential and existing fish farmers will be trained and provided with inputs.

 

 Forestry

Ghana’s forests make up part of the Guineo-Congolean phytoecological region. Forests broadly fall into two vegetation zones, each with different vegetation and forest types. The High Forest Zone covering 34% and the Savannah Zone covering 66% of the land area.

About 135,000ha of plantations have been established under the National Forest Plantations Development Program. A forest plantation strategy is under preparation according to which there is about 1 million ha of land available for the establishment of forest plantations.

The timber industry is the fourth largest foreign exchange earner after minerals, cocoa and oil exports. Primary wood and processed products account for 89% and 11% of timber exports, respectively. In addition to timber, forests provide the main source of domestic energy in the form of fuel wood and charcoal.

 

Export of Non-Traditional Agricultural Commodities 

Export of non-traditional agricultural products contributed 13.22 % of the total earnings from the export of all non-traditional commodities in 2013 and 13.57% in 2014, with a marginal increase of 0.35 percentage points. Generally, there was a reduction in the quantities of most non-traditional agricultural commodities exported in 2014 over 2013. There was a corresponding decrease in the value of commodities exported where quantity decreased except for oil seeds and nuts. In this case, while quantity exported reduced by 23.61%, value increased by 36.9% as illustrated in table below.

 

Commodity

2013

2014

Percentage Change

Quantity (Mt)

Value (GHS)

Quantity (Mt)

Value (GHS)

% Change

Quantity

% Change Value

Oil Seeds and nuts

443,089.91

437,143,806

338,465.04

598,667,668

(23.61)

36.95

Horticulture products

109,652.07

111,434,224

192,933.57

192,465,156

75.95

72.72

Cereals

5,049.82

1,508,208

869.38

930,993

(82.78)

(38.27)

Fish and sea foods

13,836.832

65,654,095

3,3267.17

166,223,389

140.42

153.18

Coffee/Tea/Spices

5,559.11

10,748,532

1,411.92

4,099,760

(74.60)

(61.86)

Source: Ghana Export Promotion Authority (Exchange Rate: $1:GH2.018 in 2013 and $1: GH¢3.25 in 2014)

 


  • Investment Opportunities

    Production

    Investment opportunities exist in the following areas;

    • Production of improved seeds and agro-chemicals (fertilizers, pesticides, weedicides)
    • Processing of some agricultural produce.
    • Production of all agricultural products such as cash crops, horticultural crops and livestock for the national, regional and European Union (E.U) markets.
    • Production of veterinary drugs, vaccines and chemicals, feed and feed ingredients for the livestock sector.
    • Fish farming
    • Production of wood and non-timber forest products (NTFP)
    • Establishment of pulp paper and panel industries
    • Establishment of wood plantations
    • Provision of tree seedlings for plantation species e.g. teak 
       

    Technological and Supporting Services

     Investment opportunities exist in the following areas;

    • Provision of tractors with basic implements, planters and harvesters
    • Provision of field and laboratory equipment for quality assurance
    • Companies to produce and  install cold chain equipment
    • Supply of  machinery to establish hatcheries for day-old chicks
    • Processing machine manufacturers to supply agro-processing and packaging equipments/ plants
    • Suppliers and financiers of factory building technology
    • Manufacturers of fishing nets, ropes, netting materials, outboard motors and other fishing inputs to fishers.
    •  Development of aquaculture production facility (cage and earthen pond).
    • Producers of fish feed
    • Technological and consulting services
    • Research and  agriculture development services
    • Inspection and grading according to international standards to make the deliveries acceptable in international markets
    • Capacity building on standards, training and certification
       

     Marketing and Distribution

    Investment opportunities exist in the following areas;

    • Companies to provide post-production services (transport, packaging, storage facilities and cold vans)
    • Companies to provide distribution of improved seeds, planting materials and agro-chemicals (fertilizers, pesticides, weedicides).
    • Distribution of veterinary drugs, vaccines and chemicals, feed and feed ingredients.
    • Companies to market processed foods in international markets such as the EU, Asia and ECOWAS markets.
  • Business Registration

    Step 1: Business Registration at Registrar General's Department (RGD)

    All enterprises are expected to fill out the relevant Application Forms, which serve as the Company’s Regulations. All companies must have an auditor, who must be a member of the Institute of Chartered Accountants, but should not be an officer or servant of the company or be an employee or partner of such persons. When all such forms have been filled satisfactorily and relevant fees paid, a Certificate of Incorporation and a Certificate to Commence Business are issued.

    Click to access basic Costs and Fees applicable at the Registrar General's Department office. 

     

    Step 2: Register with the Centre (GIPC)

    The GIPC is responsible for registering all Enterprises in Ghana.  

    Application Procedure: Investors are required to complete Investor Registration Forms (Form GIPC/R1) in duplicate. Within five (5) days from the date of orderly receipt of these forms (and its attachments) the GIPC will formally register the investment.

    Below are the relevant fees and costs applicable at GIPC. 

      

     REGISTRATION

       Prices are in GH¢

    1. Wholly Ghanaian Owned Business (Trading) - 10,500
    2. Wholly Ghanaian Owned Business (Others)- 1,050
    3. Joint-venture (i.e. $200,000 minimum foreign equity) - 10,500
    4. Wholly Foreign (i.e. $500,000 minimum foreign equity) - 16,800
    5. Manufacturing/Export Trading - 21,000
    6. General Trading (i.e. $1,000,000 minimum foreign equity) - 31,500
    7. Renewal (Every 2 years) – Joint Venture & Foreign Owned - 2,730
    8. Renewal (Every 2 years) – Wholly Ghanaian Owned - 630
    9. Liaison Office - 42,000
    10. Certificate Replacement - 630
    11. Certified True Copy (Certificate, Letters, etc.) - 420
    12. Additional Certificates for Branches - 2,520

     

     STRATEGIC PROJECTS

    Prices are in GH¢ 

    1. Processing Fee for Strategic Projects - 21,000
    2. All Strategic Investment Approvals - 105,000

     

    EXEMPTIONS (PER BILL OF LADING/AIRWAY BILL)

     All prices are in  GH¢ 

    1. Invoice Value up to $100,000 - 2,100
    2. Invoice Value up to $200,000 - 4,200
    3. Invoice Value up to $300,000 - 6,300
    4. Invoice Value up to $400,000 - 10,500
    5. Invoice Value up to $500,000 - 12,600
    6. Invoice Value up to $600,000 - 14,700
    7. Invoice Value up to $700,000 - 21,000
    8. Invoice Value up to $800,000 - 31,500

     

    QUOTA/WORK PERMITS

      All prices are in GH¢ 

    1. Automatic Quota - 3,150
    2. Replacement of Automatic Quota - 3,150
    3. Substitution of Quota Letters (Automatic & Short-term Permit) - 1,050
    4. Short-term permit: 1 year & below - 10,500
    5. Short-term permit: 2-3 years - 14,700
    6. Short-term permit: 4-5 years - 21,000

     

    Interested in Agric?

    Talk to:

    • Michael A. Acheampong
    • +233 302 665125
    • maacheampong@gipcghana.com

     

    •  Evans Elvis Acquaah
    • 233 302 665125
    • eacquaah@gipcghana.com
  • 0 comments


    0 Comment Found...



    Leave a comment


INQUIRE-ABOUT-INVESTMENT


More investment opportunities

Start of Auto Complete Address Google API Code -- >