In our part of the world, it is very good business to venture into the agricultural sector because there is the availability of vast fertile land to aid crop production and yield. There is however very little done industrially in the sector. The main reason why the local farm is for domestic consumption. One would wonder, how come a place with so much to benefit from agriculture utilize so little of what we are so fortunate to have?
THE PROBLEM
Agricultural processing is the way through which cultivated crops are transformed from its raw state into very beneficial forms which in turn makes more useful than it typically was.
An example is a cassava, which is one of the most common food crops grown locally. It is however under-utilized with all the produce being domestically consumed and a great percentage wasted annually. Its forms can be used in other industries such as the pharmaceutical industry if and only if it is processed.
Let us focus on Ghana for instance, which is very well known for the production and export of many agricultural raw materials. But does Ghana fully benefit economically from crop production? No!
There are several reasons behind the country’s inability to process its agricultural produce into value-added forms. The locals face several problems that inhibit them from trying to process their crops into ones that will fetch them more money than they make from the sale of the raw food crops.
THE ISSUE OF INVESTMENT CAPITAL
Local farmers who are the producers of these agricultural raw materials, do not have the requisite monies to set u these processing factories. To set up a factory to refine the local food crops, one has to invest a lot of money into the acquisition of high-tech machinery and equipment. These machines require regular maintenance and servicing which comes at a cost
To run such a facility, one would need to train the local staff on the use of these machines and how to prevent wastage at the factory.
Money is also needed to pay the utility of the facility which is also quite costly and this is beyond the average of the local Ghanaian farmer.
LACK OF TECHNOLOGICAL EXPERTISE AND REQUIRED MACHINERY
Ghana as a country is not technologically inclined or engineering vested and hence there is little known about how to run the factory locally. Again, in order not to exploit the machines and cause damage, it is very advisable to have staff who have in-depth knowledge about these machines and how to maintain them in order not to incur financial losses.
The required machines needed to run a factory cannot be locally procured and this means the local investor or farmer has to go through the cumbersome and expensive ordeal of procuring and shipping in this machinery. Duty and taxes imposed on these kinds of machinery is a put-off hence deterring the locals from being interested in agricultural processing.
THE WAY FORWARD
Ghanaians need to understand that the way to sell more is to sell value-added versions of the goods instead of exporting them to the international countries who would have more use for them after processing.
The cost involved in starting a processing factory is quite huge, yes, but the benefits to be reaped thereafter are enormous. It is way better to try as much to be interested and invest in the refinery of these food crops into more valuable products. Let us look at it this way, one factory if built and well managed will not only earn us millions of Ghana cedis and boost our economy but will also make the livelihoods of the rural folk better by providing employment opportunities for several young men and women who will serve as factory hands.
If handled properly, the agricultural processing industry could become the lifeblood of our country’s ailing economy and help to reduce the rate of unemployment and food scarcity.
‘’Agricultural processing has save Ghana’s Ailing economy.’’
AFRICAN CONTINENTAL FREE TRADE AREA AGREEMENT: A SOLUTION TO SECURITY IN AFRICA?
The agriculture sector is among the most vulnerable. Agriculture is important not only for food security issues but also for inter-regional food integration. This as an area that needs particular support, an area of opportunity going forward to increase inter-regional integration and to increase resilience against external shocks. With the introduction of the African Continental Free Trade Area, it is expected that it will accelerate the continent’s agriculture growth by boosting the level of intra-African trade of goods and services.
Although the goal of the AfCFTA is to promote trade between member countries it is expected to face some challenges just like previous trade liberalization agreements. The success of the AfCFTA would largely depend on existing national and local policies and practices of member countries. Specifically, a good understanding of the causes of national food insecurity and already established operational strategies for food security and agricultural development would help governments to adequately position themselves in policymaking processes in the context of the AfCFTA.
This would, in turn, improve the chance that such countries indeed benefit from the Trade Area. The potential positive effects of the AfCFTA on food security, arguing that the Trade Area could help facilitate access to a larger supply of cheaper, higher-quality food products. There is the need to ensure that national food production first satisfies the domestic market before countries engage in export. An example is Senegal, although a country rich in fishery resources international trade has led to scarcity of fish in the domestic market. The AfCFTA should help avoid unfavourable fishing agreements and instead ensure enough domestic supply of fish to promote protein-rich diets for the country’s population.
A continental policy would need to be put in place with defined thresholds to determine when countries are sufficiently food secure to export their surplus produce to other African countries. There is the need for the AfCFTA to ensure countries have a certain minimum level of food supply, especially in situations in which this supply may be interrupted, such as during periods of drought. The trade agreement may help revitalize Africa’s agricultural production in terms of productivity and food safety. Furthermore, in order to respond to diverse food preferences, entrepreneurship in value-added activities could be encouraged. It is on hopes that the trade area gets the need support to help eradicate food insecurity in the continent.
Trading Has Commenced Under the African Continental Free Trade Area (AfCFTA)
January 1st, 2021 marked the start of trading under the African Continental Free Trade Area (AfCFTA) agreement. In ratifying the agreement, 34 African countries have created the largest free trade zone in the world by country participation. This is a historic point for the continent, it is the beginning of what is hoped will, at the very least, form a workable framework for a modern African economy. An African economy that will allow free movement of labor and goods within member States a drastic change from the current siloed economic structures, and hopes to foster intra-African trade, industrialization and self-reliance.
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