The Minister for Trade, Agribusiness and Industry, Hon. Elizabeth Ofosu-Adjare, has revealed that the government is finalising a comprehensive policy to accelerate rural industrialisation in a bid to reduce production costs and create jobs in farming communities.
This forms part of a broader national plan to industrialise agriculture and curb post-harvest losses while improving youth participation in the agribusiness value chain.
Speaking in the aftermath of the National Agribusiness Dialogue held, Hon. Ofosu-Adjare indicated that the government intends to offer incentives to entrepreneurs who establish agro-processing facilities in rural areas.
According to her, this approach would make business operations more cost-effective while directly benefiting local producers through employment and infrastructure development.
“At the policy, we will incentivise people who want to site their industries in rural areas. We think that it will reduce the cost of projections. See the sort of waste that comes after production”
Hon. Elizabeth Ofosu-Adjare, Minister for Trade, Agribusiness and Industry
The proposed framework is expected to target critical gaps along the agribusiness chain. The minister explained that processing facilities situated near farms and raw material sources would minimise logistics overheads while improving production efficiency.
The Trade Minister drew attention to the high cost of transporting raw materials from farming zones to processing centres in urban hubs like Accra, which often inflates production expenses.
She stressed that agro-industrialisation must be tailored to rural economies, with examples drawn from key crop-producing areas.
“Imagine you are into the production of cashew nuts – it is cost-effective to put a factory, for example, in Techiman North, because all the waste will be here, instead of transferring everything to Accra.
“The cost of transportation will be high, and at the end of the day, your cost of production will be high”
Hon. Elizabeth Ofosu-Adjare, Minister for Trade, Agribusiness and Industry
Hon. Ofosu-Adjare maintained that the rationale behind decentralising agro-industrial facilities is not only to lower business costs but also to align production with market access and labour availability.
Creating Value Chain Opportunities
Emphasising the potential of agribusiness beyond primary agriculture, the minister said the government was committed to opening up the sector to youth who may not be inclined towards traditional farming but are interested in other aspects of the value chain.
She called for inclusive strategies that enable rural youth to benefit from the evolving agribusiness landscape.
“If we do the farming, it will be fair that our children also get to do the agribusiness part of it, especially those who are not interested in the farming aspect. So, we are encouraging people to put their industries where the raw materials are”
Hon. Elizabeth Ofosu-Adjare, Minister for Trade, Agribusiness and Industry
This shift, she noted, will provide alternative livelihoods and unlock new business avenues across agro-processing, distribution, and export services.
While full details of the policy have yet to be finalised, the minister confirmed that some form of fiscal relief – such as import waivers on agro-processing machinery – is under serious consideration. She explained that inter-ministerial collaboration will determine the final structure of the incentive package.
“At the end of the policy, I am sure the type of incentive will be solidified, even though the president mentioned the waiver on machinery for agro-processing. I think that the map will be done with the Minister for Finance”
Hon. Elizabeth Ofosu-Adjare, Minister for Trade, Agribusiness and Industry
As Ghana continues to recalibrate its agricultural economy under the new government administration in 2025, the Ministry of Trade, Agribusiness and Industry appears focused on reshaping how agro-industrial hubs emerge, function, and serve the country’s rural population.
The policy’s emphasis on location-based production and value retention is poised to not only reduce national food waste but also harness rural talent and resources for sustainable growth.
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