Ghana is preparing to roll out a comprehensive World Bank-backed Agriculture Compact aimed at tackling recurring food gluts while safeguarding the country against food insecurity. The initiative forms part of a broader strategy to modernise agriculture, improve market coordination, and build a more resilient food system capable of supporting economic growth and protecting farmers’ livelihoods.
The Agriculture Compact was unveiled during a working visit to the Kpong Irrigation Scheme at Asutsuare in the Greater Accra Region. It is being developed under the government’s Agri-Connect initiative and aligns with the objectives of the West Africa Food System Resilience Programme (FSRP). Although the Compact is yet to receive parliamentary approval, government officials describe it as a key policy instrument designed to drive sustainable agricultural transformation.
At the centre of the Compact is the need to address a persistent paradox in Ghana’s agriculture sector: periodic surplus production that leads to food gluts and depressed prices, alongside long-term vulnerabilities that expose the country to food shortages and import dependence. The government believes a coordinated approach that links production, storage, processing, and market access is essential to resolving this imbalance.
The Minister for Finance, Dr. Cassiel Ato Forson, outlined the strategic direction of the Compact, noting that it will prioritise investments in key value chains with strong potential for growth and food security. These include rice, maize, soya beans, poultry, oil palm, and cocoa. According to the Finance Minister, Ghana has the capacity to cultivate more than 400,000 hectares of rice, significantly above the estimated land area required to meet domestic consumption needs. Expanding rice production is expected to strengthen food self-sufficiency and support the poultry industry by ensuring reliable access to locally produced feed ingredients.
Dr. Forson also highlighted plans to expand oil palm plantations and rehabilitate cocoa farms as part of efforts to boost export earnings and rural incomes. He explained that the Agriculture Compact is not only focused on increasing output but also on positioning agriculture as a major driver of job creation and economic growth. By improving productivity and value addition, the government expects the sector to make a stronger contribution to national development.
A key component of the Compact is addressing the challenge of food gluts, which often leave farmers unable to sell their produce at fair prices. To mitigate this, the government plans to strengthen institutional market support mechanisms. The School Feeding Programme is expected to play a more deliberate role by sourcing food items exclusively from local farmers, thereby creating stable demand for agricultural produce.
In addition, the National Buffer Stock Company (NAFCO) is set to receive increased financial support to enable it to purchase larger quantities of produce directly from farmers during peak harvest periods. This intervention is intended to stabilise prices, reduce post-harvest losses, and ensure food availability throughout the year. Plans are also underway to invest in modern storage infrastructure, including silos and warehouses, to improve post-harvest handling and storage capacity nationwide.
The World Bank has expressed strong support for Ghana’s Agriculture Compact, recognising the strategic importance of agriculture to the country’s economy. Robert Taliercio, the World Bank’s Division Director for Ghana, noted that agriculture accounts for about 20 percent of Ghana’s Gross Domestic Product and employs more than one-third of the population. He emphasised that strengthening the sector is critical to reducing poverty, improving livelihoods, and enhancing food security.
While reaffirming the Bank’s commitment, Mr. Taliercio pointed to several structural bottlenecks that continue to limit agricultural productivity. These include inadequate irrigation infrastructure, poor farm-to-market roads, and weak rural transport systems. Addressing these constraints, he said, is essential to unlocking the full potential of Ghana’s agriculture sector. In this regard, the World Bank is mobilising up to US$1 billion in support to help improve infrastructure, enhance productivity, and build resilience across the food system.
The Agriculture Compact also places strong emphasis on policy reforms and institutional strengthening. Improving the regulatory and investment environment is expected to attract greater private sector participation in agribusiness, processing, and logistics. By encouraging private investment and innovation, the government aims to move beyond subsistence production toward a more commercially oriented and competitive agricultural sector.
The initiative comes against the backdrop of global food supply disruptions, including those linked to the Russia-Ukraine conflict, which have exposed vulnerabilities in food systems across Africa. Despite having vast arable land and a large agricultural workforce, many countries in the region remain vulnerable to external shocks due to weak infrastructure and limited value-chain integration.
If effectively implemented, the World Bank-backed Agriculture Compact could mark a turning point for Ghana’s agriculture sector. By aligning government policy, international financing, and institutional reforms, the Compact seeks to reduce food waste, protect farmers from market volatility, and ensure consistent food availability. Ultimately, it represents a long-term effort to build a resilient, efficient, and inclusive food system capable of supporting national development and food security.