Ghana must process more of its agricultural commodities locally instead of exporting them raw, according to Absa Bank Ghana. This shift will maximize export earnings and create more jobs for Ghanaians, preventing significant value loss in key sectors.
William Nettey, Head of Agribusiness at Absa Bank, stated that Ghana loses substantial value when it exports raw commodities like cocoa and cashew. Full processing can increase the value of products by up to six times compared to raw exports. Processing agricultural products locally offers one of the most effective ways to boost value and strengthen Ghana's farming industry.
This recommendation aligns with Ghana's broader economic goals of industrialization and reducing reliance on raw material exports. The country has historically struggled to capture the full value of its resources due to limited processing capacity. Increased local processing supports the government's initiatives to diversify the economy and improve foreign exchange reserves. Ghana's economy largely depends on commodities such as cocoa, gold, and oil, making value addition crucial for sustainable growth.
Mr. Nettey emphasized, "We all know that Ghana is second when it comes to cocoa export, but we can't continue exporting the cocoa in the raw form." He pointed out that while Ghana has made some progress in processing cocoa into semi-finished products, more investment is needed across the entire value chain. He also highlighted the cashew industry, noting that processed cashew products yield significantly higher value than raw cashew nuts. Ghana currently exports most of its cashew raw, losing out on substantial revenue.
Scaling up agro-processing will not only significantly increase Ghana's export revenues but also create numerous jobs across different sectors. This strategy strengthens local industries and improves the country's foreign exchange earnings, providing more stability to the Ghana cedi. Increased processing can lead to the development of new factories, improved infrastructure, and a more skilled workforce. Ghana possesses natural advantages like favorable weather and abundant water resources, positioning it well to compete globally in processed agricultural goods.
Ghanaian decision-makers and investors should focus on developing the necessary infrastructure and policies to support increased agro-processing. This includes providing incentives for investment in processing plants and improving access to credit for farmers and processors. Markets will likely respond positively to a more diversified and value-added export portfolio. Future policies must prioritize the local processing of commodities such as shea, yam, and various fruits, which also have strong export potential.