The Minister of Finance, Dr. Amin Adam, has voiced serious concerns over the agricultural sector’s crisis caused by the ongoing drought, underscoring the threat it poses to the country’s economic stability.
Northern Ghana is experiencing a severe drought that has raised alarming issues regarding food security and the welfare of thousands of farmers. The region has endured over two months without rain, leading to stunted crop growth and diminishing hopes for a fruitful harvest.
In a press conference held in Accra on Monday, August 26, Dr. Adam discussed the significant challenges faced by farmers due to the drought.
He pointed out that even those involved in economic management, like himself, are feeling the effects of the drought.
Dr. Adam highlighted that the prolonged dry spell has undermined expectations of achieving stronger economic growth.
“Investments have been lost, and even with the rains that we’re experiencing now, the rains may not be enough to support maturity of crops. Usually, in the Northern part of Ghana, by this time, new maize is on the market. If we go to the markets in Tamale, you will not find a bag of maize, prices are also going up.
“And so, for those of us in charge of the management of the economy, we’re directly affected from different perspectives. Number one: Our focus as a government [after] having stabilised the economy, and we’re seeing the micro fundamentals improving day by day. We decided that we would focus on economic growth and we saw the numbers.
“Last year, [2023] ending [we had] 2.9% economic growth, the first quarter of this year, achieving 4.7% growth. We were expecting that this trend will continue till the end of the year. But we realised that one of our growth poles, if you like one of the major contributors to our growth, which is agriculture is now facing challenges.
“It simply means that our economic growth trajectory is in danger, our economic growth is in danger. We also look at it from the perspective of pricing, we have seen it for some time now that inflation [is] going down from about 54% inflation by the end of 2022 to about 20% inflation in June this year [2024].”
Significant losses have been reported as essential crops like rice, maize, groundnuts, and millet are wilting due to the ongoing drought.
The extended period without rainfall has caused a drastic reduction in food production, raising serious concerns about a potential food shortage and the risk of famine.