Preliminary findings from a Ghana Statistical Service (GSS) survey on the impact of COVID-19 on agribusiness in Ghana shows that an estimated 78,412 workers were laid off after the lockdown in March last year.

Additionally, the report shows that 267,211 agribusiness workers suffered wage reduction during the post-lockdown period. The period that the GSS considered as post-lockdown was from May 2020 to January 2021.

“The effects of the lockdown affected not only the closure of firms engaged in agribusiness but the levels of employment as well. Overall, the estimated number of agribusiness workers that were laid off increased from 51,111 during the lockdown to 78,412 in the post-lockdown period”.

Furthermore, GSS noted that overall, 20.9% of agribusiness firms were closed during the lockdown and 11.6% remain closed after the lifting of the lockdown.

Across sectors, about 44.7% of the total workforce in agribusiness in the industry sector were laid off by the firms as a result of the lockdown. This translated into laid off of an estimated 22,873 workers and a wage reduction for 63,167 workers. Also, 48.6% of the total workforce, an equivalent of an estimated 124,364 workers in agribusiness in the industry sector had their working hours reduced.

Also, the survey finds that more than half (55.2%) of the total workforce in agribusiness in the agriculture sector, estimated to be 43,303 workers were laid off due to COVID-19. Workers in the agriculture sector were the most affected in terms of laid offs post-lockdown. However, those in the industry sector experienced the highest levels of reduced wages and reduction of hours worked after the lifting of the lockdown

Average monthly sales

Furthermore, the survey shows that about 67.6% of agribusiness firms reported a decrease in average monthly sales by 48.8% during the lockdown. Worryingly, in post lockdown, the GSS still found as much as 61.5% of agribusiness firms reporting that average monthly sales have declined by 41.2% relative to the same period a year ago.

According to the GSS, only 11.7% of agriculture firms reported a decrease in input supply before COVID-19. However, this rose to 53.9% during the lockdown period. Yet still, 45.9% still report a decline in the supply of inputs post lockdown. The GSS noted that among issues relating to input supply, increment of cost of inputs remains the biggest challenge even before COVID-19.

Meanwhile, the GSS noted that aside employment and wages management measures, agribusiness firms in the country internally implement measures to mitigate the impact of the pandemic. Key among these measures is diversification of source of input supply to include more input within Ghana. Agribusinesses also increased adoption of digital technology to market their goods/services, and use of mobile money and courier services.

COVID-19 still affecting Agribusinesses

Additionally, the GSS indicated that the pandemic has continued to ravage agribusinesses in the country. Nevertheless, the survey reveals that agribusiness firms have put in place some measures to mitigate the impact. Some of the measures identified include the adoption of mobile money, digital technology, increase internet use, and use of courier services.

“COVID-19 has indeed affected agribusinesses. Some firms in the industry remain shut down even after the lifting of the lockdown and ease of some restrictions. Some workers were laid off and others had working hours and wages reduced. Sales have also decreased largely, with recovery being slow.

“The operational challenges emanating from the pandemic on agribusiness firms means management of these firms had to resort to internal policies to survive”.

This survey assessed the impact of COVID-19 on agribusinesses in Ghana. The findings relate to periods that were before the emergence of the pandemic, as well as during and after the lockdown periods. The study focuses on the survival of firms, and the impact of the pandemic on wages and employment. It also covers demand and supply shocks arising from the pandemic, the effects of the pandemic on transportation of inputs and outputs, agriculture finance, and marketing.