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Summary: Revenue mobilization from the oil sector for Agricultural production in Ghana, a myth or reality?

Agriculture, once considered the backbone of Ghana’s economy recorded a reduction of its contribution to GDP from 45% in 1992 to 22% in 2013 and a growth rate of 0.04 in 2015. According to World Bank (2009), agriculture can function in tandem with other sectors to produce faster growth, reduce poverty, and sustain the environment and thus contributing to sustainable development. Ghana’s agricultural sector is a subsistence based Agricultural sector flooded with peasant farmers. The sector employs over 60% of the Ghanaian populace and this sector when neglected could cause serious problems for the development of the citizenry particularly with falling living standards.

The exploitation of newly-discovered natural resources such as oil can provide substantial resources to Governments and to factors of production employed in the booming sectors. According to Dessus et al (2009), how these resource booms are spent can create substantial macroeconomic upheavals, including the so-called Dutch Disease whereby existing successful sectors are harmed because of a loss of international competitiveness. The growth rate of the agriculture sector was 5.3% in 2010. There have been a decline of this sector since 2010 to the extent of even experiencing negative growth from a projected percentage of 0.04% in 2015. The crop subsector was severely affected as it experienced a negative growth rate in 2015 (MOFEP, 2016).

There have been calls by the Africa Centre for Energy for the Ministry of Finance to narrow the ABFA allocation to agriculture modernization and education to boost output, reduce the wage bill, enhance food sufficiency, reduce rural-urban migration, and support poverty reduction but will this calls be ACEP see the light of the day?

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Jacqueline Parditey

Jacqueline is a graduate with a Degree in Communication Studies from the Ghana Institute of Journalism (GIJ). She is a Project Associate currently working with the Oil, Gas and Mining projects team at Penplusbytes.
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