Agriculture accounts for about 20% of Ghana’s GDP. Some of the country’s top agricultural products include rice, cocoyam, and cassava. What is the importance of agriculture in Ghana, and how essential is the sector to the country’s economy?
The importance of agriculture to the economic development of Ghana cannot be overlooked, seeing as the sector contributes more than a quarter of the country’s GDP. The economic importance of agriculture in Ghana What are the 5 advantages of agriculture? Here is a look at the 5 importance of farming in Ghana.
1. National income contribution The economic backgrounds of many progressive nations have proven that agricultural wealth contributes considerably to boosting economic development. Most leading industrialized nations were once principally agricultural. Today, we see that developed countries still dominate the sector, and farming largely contributes to their income.
The contribution to national income is possibly the most important economic importance of agriculture in Ghana. Farmers can easily sustain their livelihoods and those of people employed in farms and other agriculture-allied industries. Without the agricultural sector, this income would be non-existent.
2. Source of food
One of the main reasons why the agricultural sector is important in Ghana is because it is the leading source of food. The country’s rapidly growing population exerts massive pressure on the food supply, making it necessary to have a vibrant agricultural sector. Without a consistent food source, societies quickly descend into chaos. If farming does not meet the growing demand of the community, economic growth slows down.
3. Provision of raw materials for various industries
Numerous industries rely on farm produce for their existence and growth. Some Ghanaian agriculture-allied industries include the sugar industry, textile mills, flour milling, and milk packaging. If the agricultural sector in Ghana declines, these allied industries will be directly affected. What would follow is an economic collapse of these and other sectors that directly or indirectly rely on farming activities.
4. Infrastructural growth
Ghana has seen the creation and expansion of numerous infrastructural facilities primarily due to agriculture. These include roads meant to transport farm produce from farms to markets, storage facilities, cooling facilities near airports, and logistics companies centred on agricultural produce. Without the necessary infrastructural network and services, agriculture cannot thrive in any nation. Hence, agriculture creates the need for the creation and improvement of these infrastructural facilities.
5. Enhancing rural prosperity
In countries like Ghana, the rural economy relies on farming and related activities. The increasing agricultural surplus due to the growing agrarian output improves social well-being, especially in rural areas. The standard of life of the rural population rises, getting it closer to parity with urban life.