How Gov’t Plans To Drive Down Food Inflation

The Akufo-Addo-led government plans to spearhead what it calls the Economic Enclaves Project (EEP) in selected areas in the country as a means of driving down food inflation which is up the roof.

In June, the Ghana Statistical Service (GSS) report shows, food inflation rose to 54.2% from 51.8% in May 2023.

The Bank of Ghana has also predicted a possible rise in the inflation profile as a result of the second-round effects of food prices.

To forestall this, the Minister for Finance, Ken Ofori Atta, while reading the 2023 Mid-year budget said the government would provide agriculture infrastructure and land development support to entrepreneurial youth and the formal private sector in pursing this project.

According to him, about 20,000 acres of land in Sekyere Kumawu in the Ashanti region, is being developed to accelerate maize, tomato, groundnuts and animal production in partnership with the National Service Scheme (NSS) also in connection with the project.

Other key locations for this project include Kasunya in the Greater Accra Region, Kumawu in the Ashanti Region and Banda in the Oti Region.

He expects a fully seeded 7,500 acres of rice, on-boarded qualified private sector entrepreneurs as anchor farmers, embarked on value chain activities such as rice milling and packaging in Kasunya; and Developed and seeded 1,500 acres of lands in Kumawu and Banda (Oti Region) respectively and also engaged private sector partners in these Enclaves.

“Mr Speaker, to enhance production and value-addition in the enclaves, the provision of ancillary services such as housing, training facilities, irrigation canals, farm roads, and electricity have also commenced.

“Mr Speaker, it is gratifying to note that the domestic private sector has responded positively to the provision of these services. About ten (10) medium and large-scale enterprises with experience in the commercial agriculture space have applied to play diverse roles, ranging from anchor farmers to machine and equipment services, in the EEP site in Kasunya.”

This, the government does not anticipate driving down just inflation but creating employment, improving food security and reducing the volatility on the forex market.