Ghana's Bono Region annually loses 1.8 million metric tonnes of cashew apples, representing millions of cedis in potential revenue. This significant waste occurs due to a critical absence of processing infrastructure, as revealed by Abdul Razak Baba, Deputy Chief Executive Officer of the Ghana Investment Promotion Authority (GIPA).
This massive loss highlights a broader issue within Ghana's cashew industry, where about 90% of the 80,000 metric tonnes of raw cashew nuts produced in the Bono Region are exported unprocessed. This practice means Ghana exports jobs and value, leaving substantial economic benefits unrealised. The lack of processing facilities for cashew apples, which could be used for juices, wines, and other products, directly impacts farmers' incomes and the national economy.
The situation fits into Ghana's ongoing challenge of adding value to its agricultural commodities before export. Despite being a major producer, the country often fails to capture the full economic potential of its raw materials. This trend has historically hindered economic diversification and job creation, keeping Ghana reliant on primary commodity exports. The GIPA's call for local investment aligns with government efforts to industrialise the economy and reduce reliance on imports.
Abdul Razak Baba, speaking at a Business Forum in Sunyani, directly addressed the issue. He stated, "1.8 million metric tonnes of cashew apples rot on farms every single year because we do not have the processing plants to utilise them." Baba challenged local investors, whom he called 'mattress millionaires,' to invest their idle capital into productive sectors. He noted that establishing processing facilities could require an investment ranging from GHS 1.5 million to GHS 20 million, depending on the scale of operations.
The immediate implication is a pressing need for significant local and foreign investment in agricultural processing. If Ghana can establish these facilities, it will create jobs, increase export earnings from value-added products, and improve farmers' livelihoods. Decision-makers will need to ensure that investment incentives, such as those under the Free Zones regime and location-based tax benefits, are effectively communicated and accessible to potential investors. The market will closely watch for concrete steps taken to attract and facilitate these crucial investments.
GIPA's Regional Investment Roadshow aims to identify and promote investment opportunities beyond cashew. Baba highlighted that Ghana imports over 34.4 million bags of maize annually, despite the Bono Region producing yields twice the national average. This presents clear opportunities in aggregation, logistics, and processing, including silos, warehousing, and feed production.
Opportunities also exist in sustainable forestry, encompassing sawmilling, plywood production, furniture manufacturing, and wood recycling. Tourism is another key sector identified, with potential for eco-lodges, riverfront properties, and hospitality infrastructure development. These diverse opportunities underscore the region's untapped economic potential.
Baba emphasised that recent reforms have significantly improved Ghana's investment climate. The transition to the Ghana Investment Promotion Authority brings a new legal framework designed to reduce barriers to entry. This includes removing minimum capital requirements for most sectors and developing a one-stop investment service centre to streamline regulatory processes.
He also highlighted incentives like 10-year tax holidays and reduced corporate tax rates for businesses in Free Zones. Additionally, location-based tax benefits are available for businesses operating outside Accra. Investors exporting at least 70% of their output can also enjoy significant tax exemptions, applicable to both foreign and Ghanaian investors.
Despite these positive developments, challenges persist. Baba acknowledged infrastructure deficits, high lending rates, limited access to capital, and information gaps as significant hurdles. Margaret Bansa, founder of Majbansa Enterprise, echoed these concerns, stating that access to finance remains a major obstacle for entrepreneurs. She stressed the need for real financial backing beyond just registration support to turn business ideas into reality.