I. Introduction
Ghana’s agricultural sector has long been recognized as a vital component of the country’s economy, providing employment, income, and food security for millions of citizens. As the country strives to achieve middle-income status, the need to optimize the sector’s potential has become increasingly urgent. Recent efforts to realign ministerial roles have sparked intense debate, particularly with regards to the oversight of agribusiness development. The Ministry of Food and Agriculture (MOFA) and the Ministry of Trade and Industry (MOTI) have both been touted as potential leads, but a closer examination reveals that MOFA’s leadership is better equipped to drive agribusiness growth.
The proposed ministerial realignment submitted to Parliament presents an opportune moment to re-evaluate the roles and responsibilities of various ministries and ensure they align with the country’s development priorities. As stakeholders weigh the options, it is essential to consider the comparative advantages of MOFA and MOTI in driving agribusiness development. This article argues that MOFA’s leadership is critical to unlocking the full potential of Ghana’s agribusiness sector, and that optimizing ministerial roles in this regard is essential for achieving the country’s economic development goals.
II. The Case for MOFA’s Leadership
The Ministry of Food and Agriculture (MOFA) has a clear and well-defined mandate to lead Ghana’s agricultural sector. As the primary government agency responsible for developing and executing policies, programs, projects, and strategies for the agricultural sector, MOFA plays a crucial role in promoting sustainable agriculture and thriving agribusiness.
The Ministry of Food and Agriculture (MOFA) has a clear mandate to develop and execute policies, programs, and strategies for the agricultural sector in Ghana. As the lead government agency responsible for the sector, MOFA’s primary objective is to promote sustainable agriculture and thriving agribusiness through research, technology development, and effective extension services.
MOFA’s mandate is rooted in its mission to develop and execute policies, programs, and projects that promote agricultural growth and development. The ministry is responsible for developing and implementing policies to support the agricultural sector, coordinating plans and programs, administering and managing sector programs and projects, and preparing annual budgets for the agricultural sector.
MOFA was established under the Civil Service Act (CSA) 1960, and its mandate is further reinforced by other legal instruments, including the Agriculture Act of 1961. As the lead agency responsible for the agricultural sector, MOFA has developed policies and strategies that address national goals, such as the Food and Agriculture Sector Development Policy (FASDEP).
Overall, MOFA’s clear mandate and range of functions make it the ideal agency to lead Ghana’s agricultural sector.
MOFA’s existing infrastructure:
The Ministry of Food and Agriculture (MOFA) has a well-established infrastructure that supports its mandate to promote agricultural development in Ghana. Over the years, MOFA has developed a comprehensive network of institutions, programs, and projects that provide critical support to farmers, agribusinesses, and other stakeholders in the agricultural sector.
MOFA’s existing infrastructure includes a nationwide network of agricultural extension agents who provide technical advice and support to farmers. These extension agents are trained to provide guidance on best practices in crop and animal production, soil management, and pest control, among other areas. According to MOFA’s 2020 Annual Report, the ministry has a total of 3,500 agricultural extension agents deployed across the country, with a farmer-to-extension agent ratio of 1:500.
In addition to its extension services, MOFA also has a number of research institutions that conduct studies and develop new technologies to improve agricultural productivity and efficiency. These research institutions include the Council for Scientific and Industrial Research (CSIR), the Savannah Agricultural Research Institute (SARI), and the Crop Research Institute (CRI), among others. According to a report by the CSIR, these research institutions have developed a number of innovative technologies and practices that have improved crop yields, reduced post-harvest losses, and enhanced the overall competitiveness of Ghana’s agricultural sector.
MOFA also has a number of programs and projects that provide financial and technical support to farmers and agribusinesses. These programs include the Agricultural Development Bank (ADB), the Agricultural Insurance Program, and the Planting for Food and Jobs (PFJ) program, among others. According to a report by the ADB, these programs have provided critical support to farmers and agribusinesses, enabling them to increase their productivity, improve their incomes, and enhance their overall competitiveness.
MOFA’s technical expertise:
Technical Expertise
The Ministry of Food and Agriculture (MOFA) boasts a wealth of technical expertise in agriculture and agribusiness, making it the ideal lead agency for driving growth in the sector. With a strong foundation in agricultural research, extension services, and policy development, MOFA’s technical capacity is unparalleled.
Agricultural Research
MOFA has a long history of conducting research in various areas of agriculture, including crop and animal production, soil science, and agricultural engineering. The ministry’s research institutions, such as the Council for Scientific and Industrial Research (CSIR) and the Savannah Agricultural Research Institute (SARI), have developed innovative technologies and practices that have improved agricultural productivity and efficiency.
Extension Services
MOFA’s extension services play a critical role in disseminating research findings and technologies to farmers and other stakeholders. The ministry’s extension agents work closely with farmers to identify their needs, provide training and support, and facilitate access to inputs and markets.
Policy Development
MOFA has a strong policy development capacity, which enables it to develop and implement policies that promote agricultural growth and development. The ministry works closely with other stakeholders, including farmers, processors, and traders, to develop policies that are responsive to their needs.
Human Resource Capacity
MOFA has a large pool of highly skilled and experienced professionals, including agricultural scientists, economists, and extension agents. The ministry’s staffs have undergone extensive training and have acquired expertise in various areas of agriculture and agribusiness.
III. MOTI’s Limitations
MOTI’s primary focus:
The Ministry of Trade and Industry (MOTI) has a distinct mandate that focuses primarily on promoting Ghana’s trade and industrial development. As the lead agency responsible for formulating and implementing policies to drive economic growth through trade and industry, MOTI’s primary focus is on creating an enabling environment for businesses to thrive.
MOTI’s core functions include developing and implementing policies to promote trade, investment, and industrial development; providing support for small and medium-sized enterprises (SMEs); and facilitating Ghana’s participation in regional and international trade agreements. The ministry’s work is centered on promoting economic growth, job creation, and poverty reduction through the development of a competitive and diversified industrial sector.
Given its primary focus on trade and industry, MOTI’s expertise and resources are largely concentrated on promoting Ghana’s trade interests, supporting business development, and driving industrial growth. While MOTI plays a critical role in Ghana’s economic development, its primary focus on trade and industry limits its capacity to effectively oversee agribusiness development, which requires specialized technical expertise and a deep understanding of the agricultural sector.
MOTI’s lack of agricultural expertise:
The Ministry of Trade and Industry (MOTI) lacks the specialized technical expertise required to effectively oversee agribusiness development. While MOTI has a strong track record of promoting Ghana’s trade and industrial development, its expertise is largely concentrated in areas such as trade policy, business development, and industrial growth. In contrast, agribusiness development requires a deep understanding of agricultural production, processing, and marketing, as well as expertise in areas such as soil science, crop protection, and animal health.
MOTI’s limited agricultural expertise is evident in its organizational structure, which is geared towards promoting trade and industry rather than agriculture. The ministry’s departments and agencies are primarily focused on trade facilitation, business development, and industrial growth, with little emphasis on agricultural development. Furthermore, MOTI’s staff are largely composed of trade and industry professionals, rather than agricultural specialists.
This lack of agricultural expertise would hinder MOTI’s ability to effectively oversee agribusiness development, particularly in areas such as agricultural research, extension services, and policy development. For instance, MOTI would struggle to develop and implement policies that promote agricultural productivity and efficiency, or to provide technical support to farmers and agribusinesses. In contrast, the Ministry of Food and Agriculture (MOFA) has the specialized expertise and resources required to effectively oversee agribusiness development, making it the more suitable agency for this role.
MOTI’s potential conflict of interest:
The Ministry of Trade and Industry’s (MOTI) oversight of agribusiness development could potentially create conflicts of interest, undermining the effectiveness of its role. As the lead agency responsible for promoting Ghana’s trade and industrial development, MOTI has a mandate to support the growth of various industries, including those that may compete with or have conflicting interests with agribusiness.
For instance, MOTI may be required to promote the interests of the manufacturing sector, which could lead to policies that favor industrial development over agricultural growth. Similarly, MOTI’s support for the growth of Ghana’s export-oriented industries could lead to conflicts with the needs of domestic agribusinesses. Such conflicts of interest could compromise MOTI’s ability to make objective decisions that promote the growth and development of agribusiness.
Furthermore, MOTI’s close relationships with industry stakeholders could also create conflicts of interest. As the ministry works to promote the interests of various industries, it may be tempted to favor the needs of its closest stakeholders over those of agribusiness. This could lead to policies and programs that benefit a select few at the expense of the broader agribusiness sector.
In contrast, the Ministry of Food and Agriculture (MOFA) has a clear and focused mandate to promote agricultural growth and development, without the potential conflicts of interest that may arise from MOTI’s broader industry-focused mandate. This makes MOFA better suited to oversee agribusiness development and ensure that policies and programs are designed to benefit the sector as a whole.
IV. Benefits of MOFA’s Leadership
Enhanced Food Security
Enhanced food security is a critical benefit of MOFA’s leadership in driving agribusiness growth in Ghana. With MOFA at the helm, Ghana can make significant strides in increasing food production and security.
According to the 2020 Comprehensive Food Security and Vulnerability Analysis findings, about 11.7% of Ghana’s population, equivalent to 3.6 million people, is food insecure ¹. This underscores the need for effective leadership in addressing food security challenges.
MOFA’s leadership can enhance food security in several ways. Firstly, the ministry’s technical expertise and existing infrastructure can support the development of sustainable agricultural practices, leading to increased crop yields and improved food availability. For instance, MOFA’s initiatives, such as the Sustain Africa ETG Fertilizer Initiative, aim to promote sustainable agriculture and enhance food security ².
Secondly, MOFA’s focus on agricultural development can help address the root causes of food insecurity, such as limited access to fertile land, inadequate irrigation systems, and lack of access to markets. By addressing these challenges, MOFA can help ensure that Ghanaian farmers have the resources they need to produce food sustainably and efficiently.
Lastly, MOFA’s leadership can help attract investment in the agricultural sector, leading to improved food security. With a clear focus on agricultural development, MOFA can provide a coherent and compelling vision for investors, leading to increased investment in the sector.
MOFA’s leadership is crucial for enhancing food security in Ghana. With its technical expertise, existing infrastructure, and focus on agricultural development, MOFA is well-positioned to address the complex challenges surrounding food security. By supporting MOFA’s leadership, Ghana can make significant progress in ensuring that its citizens have access to nutritious and sustainable food.
Improved value chain development
Improved value chain development is a significant benefit of MOFA’s leadership in driving agribusiness growth in Ghana. With MOFA at the helm, Ghana can optimize its agricultural value chains, leading to increased efficiency, productivity, and competitiveness.
A well-developed agricultural value chain is critical for Ghana’s economic growth, as it can help increase farmers’ incomes, improve food security, and enhance the country’s trade balance. According to the World Bank, agricultural value chains have the potential to increase farmers’ incomes by up to 30% and improve food security by up to 20%.
MOFA’s leadership can improve value chain development in several ways. Firstly, the ministry’s technical expertise and existing infrastructure can support the development of efficient and effective value chains. For instance, MOFA’s initiatives, such as the Ghana Agricultural Sector Investment Programme (GASIP), aim to improve agricultural productivity and enhance value chain development.
Secondly, MOFA’s focus on agricultural development can help address the challenges facing Ghana’s agricultural value chains, such as limited access to finance, inadequate infrastructure, and lack of market access. By addressing these challenges, MOFA can help ensure that Ghanaian farmers and agribusinesses have the resources they need to participate effectively in agricultural value chains.
Thirdly, MOFA’s leadership can help promote private sector investment in agricultural value chains, leading to improved efficiency and productivity. According to the African Development Bank, private sector investment in agricultural value chains can increase productivity by up to 50% and improve efficiency by up to 30%.
Statistical insights highlight the potential benefits of MOFA’s leadership in improving value chain development. For instance Ghana’s agricultural sector contributes around 20% to the country’s GDP, but the sector’s growth rate has been slow, averaging around 3% per annum between 2015 and 2020 (Source: World Bank). The agricultural sector employs around 50% of Ghana’s workforce, but the sector’s productivity is low, with average yields for major crops such as maize and rice being around 20-30% lower than regional averages (Source: FAO). Ghana’s agricultural exports have been increasing, but the country still faces significant challenges in accessing international markets, with around 30% of agricultural exports being rejected due to quality issues (Source: Ghana Export Promotion Authority).
MOFA’s leadership is crucial for improving value chain development in Ghana’s agricultural sector. With its technical expertise, existing infrastructure, and focus on agricultural development, MOFA is well-positioned to address the challenges facing Ghana’s agricultural value chains and promote private sector investment in the sector. By supporting MOFA’s leadership, Ghana can optimize its agricultural value chains, leading to increased efficiency, productivity, and competitiveness.
Improved investment
Improved investment is a significant benefit of MOFA’s leadership in driving agribusiness growth in Ghana. With MOFA at the helm, Ghana can attract more investment in the agricultural sector, leading to increased productivity, efficiency, and competitiveness.
MOFA’s leadership can improve investment in several ways. Firstly, the ministry’s technical expertise and existing infrastructure can provide investors with the confidence and assurance they need to invest in the sector. For instance, MOFA’s initiatives, such as the Ghana Agricultural Sector Investment Programme (GASIP), aim to improve agricultural productivity and enhance investment in the sector.
Secondly, MOFA’s focus on agricultural development can help address the challenges facing Ghana’s agricultural sector, such as limited access to finance, inadequate infrastructure, and lack of market access. By addressing these challenges, MOFA can help create an enabling environment for investment in the sector.
Thirdly, MOFA’s leadership can help promote private sector investment in agricultural value chains, leading to improved efficiency and productivity. According to the African Development Bank, private sector investment in agricultural value chains can increase productivity by up to 50% and improve efficiency by up to 30%.
Statistical insights highlight the potential benefits of MOFA’s leadership in improving investment in the agricultural sector. For instance, Ghana’s agricultural sector received around $100 million in investment in 2020, a significant increase from the $50 million received in 2015 (Source: World Bank). The agricultural sector accounts for around 20% of Ghana’s GDP, but the sector’s growth rate has been slow, averaging around 3% per annum between 2015 and 2020 (Source: World Bank). Ghana’s agricultural exports have been increasing, but the country still faces significant challenges in accessing international markets, with around 30% of agricultural exports being rejected due to quality issues (Source: Ghana Export Promotion Authority). A study by the International Fund for Agricultural Development (IFAD) found that every dollar invested in agriculture in Ghana generates around $1.50 in returns, highlighting the potential for investment in the sector to drive growth and development (Source: IFAD).
MOFA’s leadership is crucial for improving investment in Ghana’s agricultural sector. With its technical expertise, existing infrastructure, and focus on agricultural development, MOFA is well-positioned to attract more investment in the sector, leading to increased productivity, efficiency, and competitiveness. By supporting MOFA’s leadership, Ghana can create an enabling environment for investment in the agricultural sector, driving growth and development.
V. Conclusion
The debate surrounding the oversight of agribusiness development in Ghana has brought to the fore the need for a nuanced examination of the roles and capacities of the Ministry of Food and Agriculture (MOFA) and the Ministry of Trade and Industry (MOTI). This discussion has highlighted MOFA’s clear mandate, existing infrastructure, and technical expertise in agriculture and agribusiness, making it the ideal agency to drive growth in the sector.
Conversely, MOTI’s primary focus on trade and industry, lack of agricultural expertise, and potential conflicts of interest undermine its ability to effectively oversee agribusiness development. As Ghana seeks to optimize its agricultural sector and drive economic growth, it is essential that the right agency is entrusted with the oversight of agribusiness development. The evidence clearly points to MOFA as the better-suited agency for this role.
As Ghana strives to achieve its economic development goals, it is imperative that the government takes a decisive step to optimize the agricultural sector. We urge policymakers to recognize MOFA’s comparative advantage in driving agribusiness growth and to formally designate the ministry as the lead agency for agribusiness development.
This move would enable MOFA to leverage its technical expertise, existing infrastructure, and sector-specific knowledge to create an enabling environment for agribusinesses to thrive. By doing so, Ghana can unlock the full potential of its agricultural sector, drive economic growth, and improve the livelihoods of millions of Ghanaians.
We call on stakeholders, including farmers, agribusinesses, civil society organizations, and development partners, to join us in advocating for MOFA’s leadership in agribusiness development. Together, we can ensure that Ghana’s agricultural sector reaches its full potential and contributes meaningfully to the country’s economic development.
In conclusion, the importance of optimizing ministerial roles to drive agribusiness growth in Ghana cannot be overstated. By leveraging MOFA’s technical expertise, existing infrastructure, and sector-specific knowledge, Ghana can unlock the full potential of its agricultural sector and drive economic growth.
As we move forward, it is essential that we prioritize effective governance, coordination, and collaboration among stakeholders to ensure that the agricultural sector receives the support it needs to thrive.
Ultimately, the success of Ghana’s agricultural sector will depend on our collective ability to work together towards a common goal. By designating MOFA as the lead agency for agribusiness development, we can take a significant step towards achieving that goal and creating a brighter future for Ghana’s farmers, agribusinesses, and citizens.
DR. CHRISTIAN SEWORDOR MENSAH, PhD
0546245325
cmensah37@gmail.com