Business
Ghc1.5bn for agric highly insufficient – Agric-Impact CEO
The Chief Executive Officer (CEO) of Agri-Impact Group, Daniel Acquaye, has stated that the budget allocation to agriculture is inadequate for driving national economic transformation.
He said with only GH¢1.5 billion (approximately $100 million) allocated to agriculture, out of the GH¢279 billion national budget, the sector received just 0.54 per cent of total government spending.
Speaking at the PwC post-budget digest in Accra yesterday, the CEO of the impact investor in the agriculture sector, said achieving rice self-sufficiency alone would require over $100 million in investment, effectively consuming the entire current agricultural budget.
Mr Acquaye said the underfunding contradicted the government’s stated goal of using agriculture as a foundation for economic transformation.
In 2014, African Union members signed up to commitments which have become known as the Malabo Declaration to accelerate agricultural growth and transform the sector for shared prosperity and improved livelihoods.
Under the Comprehensive African Agricultural Development Programme (CAADP), part of an Agenda 2063 continental initiative, the member countries agreed to allocate at least 10 per cent of national budgets to agriculture and rural development, and to achieve agricultural growth rates of at least six per cent per annum.
Underlying the investment commitments are targets for reducing poverty and malnutrition, increasing productivity and farm incomes, and improving the sustainability of agricultural production and use of natural resources.
Agric Fund
The Agri-Impact CEO also added his voice to calls to establish an Agricultural Fund, similar to the Ghana Education Trust Fund (GETFund).
Mr Acquaye argued that while the country successfully produced skilled labour through education, there was no corresponding investment in sectors such as agriculture that could employ those graduates.
He said properly funding agriculture would reduce youth unemployment, improve food security, and drive rural economic development, ultimately strengthening Ghana’s entire economy.
Mr Acquaye observed that while the mining and oil sectors were good as they boosted the country’s Gross Domestic Product (GDP), they did not provide transformational growth.
“We need mining, we need the oil sector. It makes our GDP growth look good. But if you generate $1 billion from mining or you generate one billion dollars from oil, it is not the same as generating $1 billion from agriculture,” Mr Acquaye, whose company is leading a number of youth-focused impact projects in the agricultural sector, stated.
This is because to generate $1 billion from agriculture, the multiplier impact will be higher,” Mr Acquaye said.
On how the Agriculture Fund should be funded, he said “we have developed means of funding education. There is a formula that puts money into GETFund. We can use similar formula to put money into agriculture.”
Big Push
The Senior Country Partner of PwC Ghana, Vish Ashiagbor, contributing to the discussion, said a look at the nominal amount dedicated to agriculture might look insufficient, but there were critical infrastructural development projects under the GH¢10 billion “Big Push” project and other projects that would benefit the sector.
“If you look at it then absolutely it is quite small, which looks strange, given that we’re trying to push agriculture as one of the pillars of growth for our economy.
“However, the other factors around infrastructure, around the drive towards creating agri-zones, all of those will enable agriculture.
So, government does not need to necessarily invest directly in agriculture itself, but to the extent that they create the environment that allows private sector to thrive in agri-zones,” he explained.
Good budget
Mr Ashiagbor described the 2025 budget as a good start and a nice statement of intent.
He expressed the confidence that a successful implementation of the proposed measures could create a more favourable environment for private sector growth, something he noted, had been recognised as the engine of growth, but had remained elusive due to persistent economic challenges.
Mr Ashiagbor highlighted implementation as the critical factor that would determine whether the budget’s business-friendly intentions translated into tangible economic benefits.
Growth, sustainability levy
Commenting on the increase in the Growth and Sustainability Levy to three per cent, the Senior Country Partner said mining companies typically made investment decisions based on long-term planning.
Mr Ashiagbor said making sudden tax increases and extended levy periods particularly disrupted their operations and anticipated returns.
He, however, acknowledged the government’s challenging fiscal position, noting the pressing need to balance revenue collection with expenditure demands.
That difficult balancing act, he stated, required ongoing dialogue between the government and industry to foster mutual understanding and potentially identify win-win solutions that satisfied both revenue requirements and business stability needs.
The PwC Senior Country Partner referenced the minister’s characterisation of recent mining sector profits as “a windfall” due to the record high commodity prices, though he acknowledged that the minister stopped short of using the term “windfall tax.”
That framing, Mr Ashiagbor said, had made the sector a target for increased taxation during profitable periods.
Source: Graphic Online
Starting July 14, 2025, all palm oil importers in Ghana must register and obtain a permit before engaging in any importation activity, the Tree Crop Development Authority (TCDA) has announced.
This decisive move, outlined in a statement issued by the Authority, targets imports of Crude Palm Oil (CPO), Crude Palm Olein, and refined Palm Olein (vegetable oil). The new regulation mandates that all actors—including importers, processors, and traders—within the palm oil value chain must comply with the Tree Crops Development Authority Act, 2019 (Act 1010) and Legislative Instrument 2471.
According to the TCDA, the unregulated influx of palm oil has disrupted the local market, undermined smallholder farmers, and led to the circulation of substandard products.
“This bold step is to strengthen regulation and streamline operations within Ghana’s vital oil palm sector,” the Authority said. “We aim to enforce quality and safety standards, protect local producers from unfair competition, and enhance investor confidence.”
The new licensing process will be handled at the TCDA Head Office in East Legon-Ajiriganor, Accra (GhanaPost GPS: GD-253-5931). Stakeholders can also reach the Authority via 0303 981790 / 0243 946 154 or info@tcda.gov.gh.
Non-compliance will attract sanctions as prescribed by national law, the Authority warned, underscoring its commitment to firm enforcement.
In a further push for transparency and accountability, the TCDA revealed plans to publish a comprehensive list of all registered and licensed palm oil stakeholders.
Ghana’s oil palm industry is a major pillar of the agricultural economy, employing thousands and supporting domestic agro-processing. The new regulatory framework is expected to position the sector for more sustainable and competitive growth.
The Governor of the Bank of Ghana, Dr. Johnson Asiama, has assured Ghanaians that the country’s economy is well-positioned to withstand potential external shocks stemming from the ongoing conflict between Iran and Israel in the Middle East.
Speaking at the Ghana Association of Banks Industry Thought Leadership Programme, themed “Banking the Last Mile: An Industry-Led Strategy for Accelerating Digital Finance”, Dr. Asiama highlighted that Ghana’s strengthened foreign reserves, improving inflation trends, and sustained fiscal adjustments serve as robust buffers during uncertain global times.
He emphasized that the Bank of Ghana is actively monitoring global developments and their possible effects on the domestic economy.
“I wish to assure the public that Ghana’s macroeconomic buffers are stronger today than they have been in recent years,” Dr. Asiama stated.
He added that the Bank is also engaging international partners to ensure a proactive response to any arising threats. “The Bank stands ready to take prudent and pre-emptive measures to preserve Ghana’s economic stability and protect the gains we’ve made,” he said.
Impact of Middle East Tensions on Oil Prices
Meanwhile, concerns are mounting over the possible rise in fuel prices. Dr. Riverson Oppong, CEO of the Ghana Chamber of Oil Marketing Companies, recently told JOYBUSINESS that crude oil prices on the international market could surge from July 1, 2025, due to the escalating conflict in the Middle East.
If this trend continues, it could reverse the steady drop in fuel prices experienced since February 2025. Oil prices have already declined from $78 to about $74 per barrel since June 16.
In response to the growing uncertainty, President John Mahama has instructed the Finance and Energy Ministries to implement strategic measures to cushion the economy against possible shocks.
“Despite the work we have done in stabilizing the economy, Ghana is not immune from the shocks of global events,” the President noted.
Sources indicate that the government may announce specific interventions ahead of the upcoming Mid-Year Budget Review, with multiple options currently being considered.
Ghanaians can expect a drop in fuel prices starting Monday, June 16, 2025, following the government’s decision to suspend the proposed GH¢1.0 Energy Sector Levy. This comes as a relief to consumers and marks the seventh consecutive price reduction since mid-February.
The latest Pricing Outlook Report from the Chamber of Oil Marketing Companies (COMAC) indicates that the postponement of the levy is a key factor driving the anticipated price cuts.
Projected Prices at the Pump
According to data sourced from oil marketing firms and obtained by Joy Business, the new price of petrol is expected to be around GH¢11.77 per litre — representing a drop between 1.1% and 2.25% from prices recorded on June 1.
Diesel prices are set for a more significant decrease, falling by as much as 4.3% to about GH¢12.13 per litre. Likewise, Liquefied Petroleum Gas (LPG) will see a 3.2% dip, bringing the price per kilogram to GH¢13.30.
Why Are Prices Falling?
The Chamber attributes the downward trend primarily to the Ghana cedi’s continued appreciation against the US dollar. This currency strength has offset the impact of rising global oil prices, which surged amid renewed conflict in the Middle East.
Despite crude oil prices climbing to around $75 per barrel due to Israel’s military strikes on Iranian nuclear sites, Ghanaian fuel prices remain stable — for now. The situation, however, remains volatile.
Warning Signs for July
Officials at COMAC caution that if global oil prices continue to climb, fuel prices in Ghana could begin to rise again starting July 1, 2025.
Recent escalations in the Middle East have already caused oil prices to rise sharply, with Brent crude jumping 4.41% from $65.35 to $68.23 per barrel. These tensions have also prompted the United States to partially evacuate its embassy in Iraq, adding to global uncertainty.
As a result, international benchmark prices for petrol and diesel have risen by 1.03% and 3.94% respectively. In contrast, LPG prices dropped by 1.79%.
Impact of the Suspended Levy
COMAC’s projections suggest that had the government gone ahead with the additional GH¢1.0 Energy Sector Levy, consumers would have faced significant price hikes. Petrol would have surged by 9.1% per litre and diesel by 8.25%. LPG would have still seen a modest 2.29% decline, as it was not included in the levy’s scope.
The current suspension offers temporary relief, but stakeholders warn that sustained global instability may force a reversal of the current trend in the coming weeks.
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