Meager GH₵1.5 Billion Agriculture Budget Adds “Better Value”

The Chairman of Parliament’s Agriculture and Cocoa Affairs Committee, Godfred Seidu Jasaw, has defended the government’s GH₵1.5 billion budgetary allocation to the agricultural sector in the 2025 budget.

He argued that it presents strategic investment opportunities despite concerns over its adequacy.

The Wa East lawmaker acknowledged that the allocation appears lower than in previous years but emphasized that the government’s priority should be building infrastructure to ensure long-term sustainability and growth in the sector.

“There is a limited resource envelope that the Minister of Finance can allocate to all the competing sectors.” 

“…it appears to be smaller compared to what we witnessed in the 2024 budget. But if you analyze it, you will appreciate why this one is likely to have better value because the investments in the last allocation had GH₵700 million for Planting for Food and Jobs and the rest went into compensation.”

Godfred Seidu Jasaw

Accordingly, Jasaw urged the public to actively contribute to improving the agricultural sector, stressing that efficient management and targeted investments could yield significant benefits.

He stressed the importance of focusing on how the seemingly inadequate funds would be used to maximize impact rather than just the size of the budget itself.

Industry Experts Raise Concerns

However, some industry experts are raising concerns about the sufficiency of the allocation. 

The Chief Executive Officer of Agri-Impact Limited, Daniel Fahene Acquaye, warned that the GH₵1.5 billion allocation is insufficient given the sector’s pressing needs.

Acquaye highlighted the urgent need for increased investment in productivity, warning that the current budget may not be enough to drive substantial progress.

“Agriculture is the backbone of our economy, and without proper investment in mechanization, irrigation, and food security, we will continue to face challenges in meeting local food demands and enhancing exports.”

Godfred Seidu Jasaw

He stressed that the government must take a more aggressive approach to tackling the structural challenges within the agricultural sector to ensure sustained growth and food security.

In response to these concerns, Jasaw maintained that the focus should be on maximizing the impact of the allocated funds through strategic investments and partnerships with the private sector.

“Frankly, I see the allocation quite low, but…what we need to do is ensure the Minister and the managers of the sector turn around the goodwill, court investors, and define our priorities in infrastructure for agriculture to be able to turn around the opportunities that the sector presents now.” 

Godfred Seidu Jasaw

Jasaw further elaborated that Ghana’s agricultural sector does not require an excessively large budget to thrive but rather a well-designed financial framework that maximizes efficiency, fosters innovation and encourages private sector involvement. 

He emphasized that the focus should move beyond merely increasing budgetary allocations and instead explore alternative funding mechanisms that can drive sustainable growth.

According to him, leveraging innovative financing models, such as blended finance and agricultural investment funds, would help attract much-needed capital into the sector. 

Additionally, he highlighted the importance of public-private partnerships and international collaborations in mobilizing resources and expertise. 

By adopting these strategic financial approaches, Ghana can create a more resilient and self-sustaining agricultural sector without overburdening the national budget.

Finding a Balance Between Investment and Sustainability

While the debate over the adequacy of the GH₵1.5 billion allocation continues, stakeholders agree that ensuring sustainability in the agricultural sector requires more than just financial commitment. 

There must be strategic planning, efficient fund utilization, and improved governance structures.

Agricultural analysts have noted that Ghana’s agricultural industry still faces issues such as post-harvest losses, outdated farming techniques, and inadequate storage facilities. 

Addressing these structural weaknesses is crucial to achieving long-term food security and economic stability.

In the coming months, the Ministry of Agriculture is expected to outline specific strategies for how the GH₵1.5 billion will be utilized. 

The key question remains whether the allocated budget will deliver the expected outcomes or further amplify concerns about insufficient funding in Ghana’s agricultural sector.

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