The Government of Ghana has separated agribusiness from the Ministry of Food and Agriculture (MoFA) and placed it under the Ministry of Trade and Industry (MoTI).

While this may appear to be a strategic move to enhance trade and industrialisation, I argue that such a decision would undermine the integrated development of Ghana’s agricultural sector, disrupt value chain coordination, and ultimately derail the progress needed to achieve sustainable food security and rural development.

This article seeks to critically examine the potential consequences of this policy and provide a compelling argument against its implementation.

The Inseparability of Agribusiness and Agriculture

Agribusiness and agriculture are intrinsically linked. Agribusiness encompasses all activities along the agricultural value chain, including input supply, production, processing, marketing, and distribution.

These activities are interdependent and cannot be effectively managed in isolation. Separating agribusiness from MoFA risks creating a fragmented approach to agricultural development, with two ministries working in silos rather than collaboratively.

The Ministry of Food and Agriculture plays a pivotal role in providing extension services, improving productivity, and implementing policies that support smallholder farmers. These farmers are the backbone of Ghana’s agricultural sector and are directly connected to agribusiness activities through value chains.

By moving agribusiness to MoTI, the linkage between production and processing or marketing could weaken, leading to inefficiencies and disruptions across the value chain.

For example, policies aimed at improving productivity, such as subsidies for fertilizers and improved seeds, would have limited impact if not aligned with agribusiness policies that ensure the processing and marketing of agricultural produce.

Narrowing Agribusiness to Trade

MoTI primarily focuses on promoting exports, facilitating trade agreements, and supporting industrialisation. While these are critical functions, they represent only a fraction of what agribusiness entails.

Agribusiness is not solely about trade; it is also about rural development, food security, and creating sustainable livelihoods for farmers and agribusiness entrepreneurs. Placing agribusiness under the MoTI risks reducing its scope to trade-related activities, neglecting other critical components such as like input supply, post-harvest management, among many other allied agri-support services.

A trade-centered approach to agribusiness could lead to a focus on export-oriented crops at the expense of staple crops that are essential for domestic food security.

This would exacerbate Ghana’s dependency on food imports, leaving the country vulnerable to external shocks and global market fluctuations. Furthermore, prioritising only exports over local food systems could marginalise smallholder farmers who lack the capacity to compete in export markets, deepening rural poverty and inequality.

Disruption to Policy Coordination and Implementation

One of the greatest challenges of governance in Ghana is policy coordination across ministries. Splitting agribusiness from MoFA and placing it under the MoTI would add another layer of complexity to an already fragmented policy landscape.

The two ministries would need to coordinate closely on issues such as agricultural financing, value chain development, and infrastructure investment. However, given the bureaucratic inefficiencies that often plague inter-ministerial coordination, there is a high likelihood of duplication, delays, and conflicting policies.

For instance, consider the development of an agricultural value chain for maize. MoFA would focus on improving maize production through research, extension services, and subsidies, while MoTI would oversee the processing, marketing, and export of maize products.

Without seamless coordination, there could be mismatches between production levels and market demand, resulting in either post-harvest losses or supply shortages. Such inefficiencies would undermine the competitiveness of Ghana’s agribusiness sector and erode the gains made in agricultural development.

A Holistic Approach to Agribusiness Development

Rather than separating agribusiness from MoFA, the government should adopt a holistic approach to agribusiness development that leverages the strengths of both MoFA and MoTI.

This could involve the establishment of an inter-ministerial task force or committee to oversee agribusiness policies and programs, ensuring alignment and coordination between the two ministries. Such a structure would enable the government to integrate agricultural production, value addition, and trade into a cohesive strategy for agribusiness development.

Additionally, investments in infrastructure, research and development, and capacity building should be prioritized to enhance the competitiveness of Ghana’s agribusiness sector.

By strengthening the existing structures within the Ministry of Agriculture, the government can build a resilient and inclusive agribusiness ecosystem that drives economic growth, creates jobs, and improves food security.

Conclusion

The separation of agribusiness from the Ministry of Agriculture and place it under the Ministry of Trade is a policy move that could have far-reaching negative consequences for Ghana’s agricultural sector. Agribusiness and agriculture are inseparable, and their success depends on close integration and coordination.

Moving agribusiness to the Ministry of Trade risks fragmenting value chains, marginalising smallholder farmers, and narrowing the scope of agribusiness to trade-related activities.

To achieve sustainable agricultural development and inclusive growth, the government must retain agribusiness within the Ministry of Food and Agriculture while fostering collaboration with the Ministry of Trade.

A holistic, integrated approach to agribusiness development is essential for unlocking the full potential of Ghana’s agricultural sector and ensuring a prosperous future for all Ghanaians.

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The author, Nana Eghan, PhD is an agricultural economist and private citizen who is a resident of Adenta, Greater Accra.

He can be reached via Nanaeghan@gmail.com