Doing Business In Ghana – Agriculture Sector

Discussion in 'Africa' started by ceolatif, Aug 14, 2018.

  1. ceolatif
    Offline

    ceolatif Rookie

    Joined:
    Aug 11, 2018
    Messages:
    3
    Thanks Received:
    1
    Trophy Points:
    1
    Ratings:
    +1
    The Ghanaian economy keeps growing every day and it is the wish of the government that more businesses are set up to help speed up the growth of the economy. It is our wish that many of the youth would rise up with business ideas that could help support the economy and themselves as well as foreign investors who wish to be doing business in Ghana so as to reduce the rate of unemployment in our dear country Ghana.

    To help motivate the youth and foreigners to take a step in this direction, here are some useful information to guide you in starting up your business in Ghana.

    Economy

    The services sector is the biggest contributor to GDP accounting for 57%, followed by Industry with 24% and Agriculture with 19%.

    The industry sector recorded the highest growth of 11.5%, compared to 1.8% in 2016, mainly from mining and petroleum.



    The agriculture sector grew by 7.6%, up from 5% the previous year, driven by good performances in the crops, fisheries, and cocoa sub-sectors.

    Growth in the services sector slowed to 3.7% from 6.6%, due to slower growth in information, communication, and finance.


    Outstanding credit to the private sector grew by 16.2% in May 2017, against 10.1% for the same period in 2016.



    Ghana’s near-term economic prospects are good as evidenced by the half-year fiscal performance, though global interest rate hikes are likely to impact high domestic and external financing costs.

    Overall GDP is projected to rebound to 6.1% in 2017 and this is expected to be driven mainly by oil production.

    Doing Business In Ghana ‘s Agriculture sector

    The key regulator of the agriculture, agro-processing and fisheries sector is the Ministry of Food and Agriculture. Ghana’s agricultural (Agric) sector is a key driver of the Ghanaian economy, contributing approximately one-fourth (22.7% in 2012 and 21.3% estimated for 2013) of the country’s GDP.

    The agric sector contributes over 50% to national employment while growing at an annual rate of 5.3% (end of 2012).



    Agricultural land forms about 65.1% of the total land area, including inland waters. The main agricultural produce in Ghana can be classified into the following three groups:

    Agricultural development

    Currently, Ghana is a net food importer, importing over US$450 million worth of rice alone annually, together with substantial amounts of chicken, meat and dairy products.

    There is, therefore, a significant domestic opportunity for investment in crop and livestock production. Furthermore, rapid urbanization and rising per capita income in Ghana are driving significant increases in domestic demand for, and consumption of, staple crops


    Investment incentives and opportunities for doing business in Ghana ‘s agric sector


    Companies engaged in the business of converting crops, fish or livestock produced in Ghana into edible canned or other packaged products, other than in their raw state, enjoy a tax holiday of three years from the commencement of commercial production.
    Agro-processing businesses established in Ghana after 1 January 2004 enjoy a five-year tax holiday from the date of commencement of business

    Companies producing cocoa byproducts from cocoa waste also enjoy a five-year tax holiday from date of commercial production.
    Companies engaged in the processing of waste products enjoy a seven-year tax holiday from date of commercial production.
    Income from cocoa for cocoa farmers are exempt from income taxes.
    Ghana’s tax laws also permit farming losses to be carried forward for a period of five years after the basis period (accounting year) which the losses relate to.

    There are location-based tax incentives for agro-processing enterprises. Exemptions from import duties on imported plant, machinery and equipment also exist.

    Opportunities are available in relation to the provision of agricultural inputs such as improved seeds and agrochemicals, including fertilizers, pesticides, fungicides, herbicides, veterinary drugs, vaccines and chemicals, animal feed and feed ingredients, etc.

    Additionally, there is the need for the processing of dairy products as well as the supply of machinery to establish hatcheries for day-old chicks.
    Floriculture offers a lot of opportunities as Ghana’s climate and topography make the country suitable for the cultivation of a number of exotic flowers. Species such as heliconia, caribea, celosia, curcuma, gladioli, hibiscus, roses, ornamental palms and ferns perform well under natural conditions. There is potential in the national, regional and European Union markets.

    Investment opportunities exist in the agro-processing industry to add value, reduce post-harvest losses, promote price stability and expand demand for local agricultural produce. Examples are the processing of cocoa beans into cocoa products and fruits into fruit juices, among others.

    Developing irrigable land through irrigation is another key area. While Ghana has a potential irrigable area of 346 000 hectares, only 10 000 hectares have been developed.

    In the distribution field, companies are required to provide post-production services in transport, packaging and cold vans.

    There are further opportunities in standards training and certification; capacity building for management and market-oriented enterprises; market intelligence research; and the development of agricultural finance and insurance.

    Technology and services in the agricultural sector – which include irrigation, heavy equipment hiring (i.e. hiring of tractors, ploughs, harrows and combine harvesters, etc.) – provide investment opportunities.

    Investment opportunities also exist in the storage industry. Inadequate and inappropriate storage facilities are constraints to agricultural production, thereby contributing to high postharvest losses and low returns for farmers and processors.
     
    • Thank You! Thank You! x 1
  2. frigidweirdo
    Online

    frigidweirdo Platinum Member

    Joined:
    Mar 7, 2014
    Messages:
    31,774
    Thanks Received:
    3,186
    Trophy Points:
    1,130
    Ratings:
    +13,201
    You just need to stop corruption in government, hard to do in Africa.
     

Share This Page