The Minister of Finance, Dr Cassiel Ato Forson, has announced that under Pillar 2 of the New Economy Programme, there is going to be US$3 Billion Investment in Commercial Agriculture.
He said a key plank of the strategy is to construct the Pwalugu Multipurpose Dam at a cost of $1 billion to irrigate 25,000 hectares of farmland, provide facilities for 1,000 fish cages within the reservoir, support Year-round vegetable production and ensure Flood protection and Water security.
Presenting the 2027 budget statement in parliament on Thursday, November 12, he said that the Dam will also generate 70 MW of hydropower.
The first phase is expected to be ready by early 2029, with full completion in 2030, he said.
Also under Pillar 2, he said, the government will develop eight integrated agricultural industries:
A. Rice production
Establish Rice Development Hubs in:
Afram Plains.
Volta Basin.
Western Ghana.
Northern Ghana.
Introduce irrigation, mechanisation, silos, modern mills, packaging and logistics.
Bring an additional 100,000 hectares under rice cultivation.
Target yields of 5–6 metric tonnes per hectare.
Create approximately 125,000 jobs.
Amend public procurement laws to ensure that public institutions purchase only Ghana-grown rice and other staple foods using public funds.
B. Sugar production
Achieve self-sufficiency in sugar production by 2030.
Develop locally grown sugarcane, irrigated production zones and nucleus estates.
Organise out-growers and establish commercially viable sugar mills.
Introduce import permits and quotas to restrict sugar imports as local production increases.
C. Poultry and animal feed production
Develop the entire poultry value chain, including:
Breeder farms and hatcheries.
Day-old chicks.
Animal feed.
Vaccines and veterinary laboratories.
Modern poultry houses.
Processing plants.
Cold storage and retail distribution.
Develop commercial maize and Soyabean production.
Reduce feed costs, which currently account for 60–70% of poultry production costs.
D. Fish production and aquaculture
Address Ghana’s estimated annual fish supply gap of 500,000 metric tonnes.
Make aquaculture the main source of new fish supply while restoring marine and inland fisheries.
Support commercial and smallholder fish farmers with:
Quality broodstock and fingerlings.
Fish feed.
Cages, ponds and tanks.
Aquatic health laboratories.
Disease surveillance.
Water-quality management systems.
E. Oil palm production
Develop 100,000 hectares of new oil palm plantations across the Western, Central, Eastern, Volta and Ashanti regions.
Connect nurseries, nucleus estates and smallholder farmers to modern mills, refineries and manufacturing facilities.
A US$500 million World Bank financing arrangement has been secured for consideration by Parliament.
The programme has the potential to create more than 250,000 jobs.
Target self-sufficiency and export capacity by 2032.
Approximately 100,000 hectares of suitable land have been identified, with acquisition processes underway.
F. Vegetable production
Develop the vegetable industry around the Pwalugu Multipurpose Dam.
Invest US$1 billion in the dam.
G. Cocoa value addition
Process at least 50% of Ghana’s cocoa locally by 2028.
Increase local processing to 100% by 2030. Complete the transition towards ending raw cocoa exports.
Expand production beyond primary grinding into:
Cocoa liquor.
Cocoa butter.
Cocoa cake.
Cocoa powder.
Chocolate.
Cosmetics and other finished products.
He further summarised the funding source for the New Economy Programme, saying that the Programme is estimated to cost US$10 billion over four years.
This translates into approximately US$2.5 billion annually, he said.
“Funding will come from two main sources: Primary surplus: Ghana achieved its 2026 target of a 1.5% primary surplus of GDP; Government will retain 0.5% of GDP from 2027 to 2030; The remaining 1% of GDP will be allocated to financing the New Economy; Enhanced revenue measures: Improved revenue collection has exceeded the 2026 targets and contributed an additional 0.5% of GDP,” he said.
Together, he said, these resources are expected to provide the 1.5% of GDP required to finance the programme.
