Agricultural Economist Prof. Edward Ebo Onumah says Ghana must diversify its agricultural focus beyond cocoa to enhance economic support.

Speaking on Joy News’ PM Express, the Associate Professor highlighted that the current budgetary allocation to agriculture is insufficient, given its critical role in the economy.

Prof. Onumah stated that increasing the agricultural budget from the current 7-8% to at least 10% is crucial for significant progress.

“I have been monitoring since 2013 and we are doing around 7 to 8% thereabout. Increasing it to 10% for instance will depend on those who will be brought to do the supervision and the specifics. Other than that we can throw in the funds but have little to show for it,” stated.

He pointed out that the current funding is heavily skewed towards the cocoa sector, with 80% of the agricultural budget directed there, leaving only 20% for other initiatives like Planting for Food and Jobs, Rearing for Food and Jobs, Aquaculture for Food and Jobs, and Export for Rural Development.

“When it comes to cocoa, we are over pampering the cocoa sector," he stated.

Prof. Onumah suggested reallocating a portion of the cocoa budget to other cash crops such as palm oil and coconut to generate substantial revenue.

He recalled the late Kwabena Kyeremateng Agyarko supporting this view, stating that billions of dollars could be generated through diversified agricultural investments.

He also distinguished between agriculture financing, which involves business-oriented loan access for farmers, and agriculture funding, which relies on government support and is unsustainable.

Prof. Onumah urged a reevaluation of budget allocations to foster a more balanced and productive agricultural sector.

Cocoa’s Contribution to GDP

Cocoa remains a cornerstone of Ghana’s economy. In 2021, it contributed approximately GH¢3.1 billion to the nation’s GDP, representing over 10% of the total GDP.

The sector employs over one million farmers and supports millions more in related industries, underscoring its significance in Ghana’s economic development.