Ghanaian Small and Medium Enterprises (SMEs) urgently need financial support to purchase food processing equipment. Professor Charles Tortoe, Director of the Council for Scientific and Industrial Research Food Research Institute (CSIR-FRI), highlighted this critical need. This assistance would enable SMEs to adopt existing processing technologies.
These technologies improve food value addition and efficiency in food processing activities. However, the high cost of equipment like dehydrators remains a big barrier. Without appropriate machinery, food processing cannot be effective, limiting the growth of many small businesses.
This issue fits into Ghana's broader economic goals of reducing post-harvest losses and strengthening agricultural value chains. Data indicates that a significant percentage of agricultural produce spoils before reaching consumers. Boosting processing capabilities through SME support can improve food security and create jobs. Previous calls from SMEs have highlighted financing as a major hurdle, with 74% of SMEs reportedly collapsing within five years.
Professor Tortoe stated that research institutions have already developed several technologies. He said, “At the end of the food value addition, we have generated the technologies. These technologies are available. SMEs must take up these technologies.” He stressed, “In processing, you can’t do without equipment, and these equipment are expensive.”
Decision-makers must consider targeted interventions to help SMEs access and finance necessary equipment. Such support will enable more businesses to use existing technologies, improve productivity, and expand food value addition. Increased government and private sector investment in this area could significantly boost Ghana's agricultural sector competitiveness. Addressing equipment costs will be key to unlocking the full potential of these businesses.
Enhanced support for agro-processors will not only improve the competitiveness of SMEs. It will also directly contribute to reducing substantial post-harvest losses across Ghana. This move would strengthen the nation's agricultural value chain, promoting economic stability and growth. Policy changes could include subsidies, favorable loan schemes, or equipment leasing programs. These measures would directly impact the almost 3 million SMEs in Ghana, which contribute about 70% to Ghana's Gross Domestic Product (GDP).
The ability of SMEs to upgrade their processing capabilities will also influence Ghana's export potential. Value-added food products fetch higher prices in international markets. This would bring in more foreign exchange for the country. Without this support, local processors may struggle to meet global quality and volume demands. Stakeholders will be watching for concrete policy actions to address this funding gap.