GHANA – The Ghanaian government has set aside US$70 million to construct a new grain silo with a 60,000-tonne capacity in the northern part of the country.
This project, announced by the Minister of Food and Agriculture, Bryan Acheampong, aims to strengthen the nation’s food security infrastructure in response to the severe drought affecting the region.
The silo, which is the first of its kind in Ghana, is expected to be completed within 12 months and will serve as a strategic reserve to safeguard against future climate-related disruptions.
The initiative comes at a critical time as the ongoing drought has severely impacted agricultural production, particularly in the northern regions, which account for over 60% of Ghana’s cereal output.
The new storage facility is intended to help stabilize food supplies by storing surplus grains that can be used during periods of scarcity.
Additionally, this move aligns with broader governmental efforts to enhance resilience against climate-induced food insecurity and to support local farmers by ensuring that the domestic market remains adequately supplied
The drought has been severe, affecting over 435,000 farmers across eight regions—Northern, North East, Bono, Bono East, Oti, Savannah, Upper East, and Upper West. These areas are crucial for Ghana’s food supply, and the drought has severely impacted staple crops such as maize, rice, sorghum, groundnut, millet, and yam, leading to significant economic losses.
The drought’s impact has raised concerns about Ghana’s economic trajectory, with Finance Minister Mohammed Amin Adam warning that the prolonged dry spell threatens the country’s food security and economic growth.
Despite a recent decrease in inflation from 54% at the end of 2022 to about 20% in mid-2024, the drought could reverse these gains, potentially triggering a food crisis and inflation spike due to supply shortages.
The Ministry of Agriculture estimates that farmers have already faced losses of about 3.5 billion cedis (US$224 million) in investments and potential income losses of 10.4 billion cedis (US$666 million) due to reduced crop yields.
To mitigate the crisis, the government has implemented a $500 million emergency aid program, sourcing funds from international partners, including the World Bank.
The initiative aims to provide cash transfers to farmers and stabilize food supplies through imports, with plans to import up to 300,000 tonnes of maize and 150,000 tonnes of rice.
Additionally, since August 26, Ghana has suspended the export of essential crops such as rice, maize, and soybeans to secure domestic supply and prevent further shortages.
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