By Charles Fynn ODURO
Ghana’s economy is facing persistent challenges, such as inflation, currency depreciation, and a widening trade deficit due to the reliance on food imports.
Over the past decade, the economy has struggled with erratic GDP growth, increasing inflation, and significant exchange rate depreciation, resulting in the cost of living and business sustainability.
The agricultural sector, despite its potential to generate economic growth, remains underdeveloped due to inadequate investment, limited value addition, and poor youth involvement.
Faith-based Institutions (FBIs), with their vast influence on Ghana’s youth population and financial resources, are a potential opportunity to shift towards agribusiness-driven economic transformation.
This paper explores how these institutions can contribute to agricultural development, create employment, and reduce import dependency, ultimately fostering economic resilience.
Ghana’s economic structure has become increasingly dependent, particularly in the agriculture sector. The country’s food imports include rice, maize, poultry, tomatoes, and sugar, which contribute to a significant portion of the country’s food imports, resulting in billions of dollars annually.
Despite government efforts to boost local agricultural production, the country still imports over $2 billion worth of food products each year. Meanwhile, Ghana’s youth unemployment rate remains high, affecting approximately 12.6% of the population between 15-24 years, with underemployment affecting nearly 50% of young workers.
Faith-based organizations (FBOs) oversee extensive land resources, have substantial financial resources, and control educational and vocational training institutions that could be utilized to achieve a sustainable agribusiness agenda. This paper critically examines the last decade’s economic indicators, highlighting the impact of food import dependency on inflation and exchange rate depreciation, while demonstrating how strategic interventions by FBIs can reset the economic trajectory.
Ghana’s Economic Performance: The Role of Agriculture
Over the past decade, Ghana’s GDP growth has increased due to global commodity price fluctuations, external debt burdens, and inflationary pressures. The agricultural sector, which once contributed more than 50% of GDP in the 1990s, now accounts for 18-21%, indicating a shift towards services and industrialization without adequate structural change.
The country spends over $500 million annually on rice imports despite possessing vast arable land for local production. Poultry imports alone exceed $600 million annually, a significant contributor to the increasing trade deficit. These high import figures are directly linked to rising inflation, as food prices increase due to exchange rate depreciation. Ghana’s cedi, which traded at GHS 3.8/USD in 2015, decreased to GHS 14.97/USD in 2024, significantly increasing the cost of imported goods and increasing the inflation.
The Role of Faith-Based Institutions in Economic Transformation
Faith-based Institutions (FBIs) have been instrumental in Ghana’s socio-economic development, particularly in education and healthcare. Their potential role in economic transformation through agribusiness investment, however, remains largely untapped. Major religious groups such as the Catholic Church, Presbyterian Church, and Methodist Church collectively own thousands of acres of land across the nation, much of which remains unused or neglected. With access to financial resources, FBIs can establish large-scale farms, invest in agro-processing, and create microfinance schemes for agribusiness.
Economic Impact of FBO-Led Agribusiness
A structured partnership between FBIs in agribusiness would yield significant economic benefits: A 30% increase in domestic rice production through faith-based farming initiatives would reduce rice imports by $150 million annually. A targeted agribusiness initiative that employs 200,000 young people could reduce youth unemployment by 5% within five years. By reducing import reliance and boosting agricultural exports, Ghana could stabilize the cedi against the US dollar, thereby reducing inflationary pressure.
Conclusion and Policy Recommendations
Ghana’s economic vulnerability is deeply tied to its heavy reliance on food imports, persistent youth unemployment, and a weak agricultural value chain. Faith-based institutions, with their extensive resources and influence, have the potential to transform agribusiness, creating sustainable jobs, reducing import dependence, and enhancing the economy.
To increase their impact, it is recommended that:
- The government provides tax incentives for faith-based agribusiness ventures.
- The FBI allocates at least 10% of their annual revenue to agricultural projects.
- A National Faith-Based Agribusiness Fund be established to support youth-led agricultural enterprises.
With a strategic approach, faith-based organizations can transition from social intervention agents to economic drivers, fostering a resilient and self-sufficient Ghanaian economy.
