fastest growth rate on the continent, estimated at 13.4% in 2011 and 10.4% in 2012 (World Bank Global Economic prospects 2011).
Andre Rafnsson, director of Growth Green Agriculture, an agricultural investment company, highlights the findings of an in-depth report published by KMPG titled "Doing Business in Ghana" as strong reasons to invest in Ghana.
The report points out that agriculture has long been an important sector of the Ghana economy, employing more than 50% of the labor force and contributing around 43% of GDP in previous years.
Rafnsson agrees with KPMG's stance that agriculture in Ghana is an unexploited investment opportunity, being a very important economic sector employing more than half the population.
The major strengths of this sector include a diversity of commodities, well-endowed drainage basin, a well-established agricultural research system and relative proximity to the European
market.
Ghana has a total land area of 23.9 million hectares with 57 percent suitable for agricultural purposes. There are indications that Ghana has the potential for agricultural business to develop into a multi-billion dollar industry. Agricultural crops,including yams, grains, cocoa, oil palms, kola nuts, and timber, form the base of Ghana’s economy.
One of the big attractions for companies like Growth green Agriculture to invest in Ghana is the fact that major stakeholders and the government are looking for ways to partner with investors outside the country to improve agri-business through modern technology, to ensure food security in meeting international requirements. An added advantage is that over two thirds of the land in Ghana is fertile, and needs little or no fertilizers/chemical to grow crops in large quantities.
KPMG identify various areas of opportunity to invest in Ghana
One way to invest in Ghana would be in the provision of agricultural inputs such as improved seeds and agrochemicals including fertilizers, pesticides and herbicides.
Another opportunity is in the processing of agricultural products such as cereals, as well as processing of farm produce such as to add value, reduce post-harvest losses, promote price stability and expand demand for local agricultural produce.
Developing irrigable land through irrigation is another key area. While Ghana has a potential irrigable area of 346,000 hectares, only 10,000 hectares have been developed.
In the distribution field, companies are required to provide post-production services in transport, packaging and cold storage.
In line with the country’s goal of achieving middle income status by 2015, Ghana has been undergoing a process of financial sector restructuring and transformation as an integral part of its Vision 2015 strategy, making the propects even brighter for companies wishing to invest in Ghana.
Growth Green Agriculture to Invest in Ghana
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Rafnsson, of Growth Green Agriculture, says Green Crop Farming Ghana Limited has been retained as their farming operator in Ghana to cultivate, maintain, harvest, dry, transport and sell the crop. It was established in June 2012 and has commenced the farming of chia, a fast growing crop with excellent profit potential. Chia is grown commercially for its seed, a food that is rich in omega-3 fatty acids.
Green Crop Farming Ghana Limited is 20% owned by local management and 80% by Invest in Ghana A/S, a Danish company in which Rafnsson is a director and shareholder. Invest in Ghana A/S has invested in excess of US$400,000 in the establishment of the farming operations of Green Crop Farming Ghana Limited, which has entered into a contract with a US company to purchase the production of chia on its land for 2012 and 2013.
Green Crop Farming Ghana Limited will farm, harvest, dry, transport, package and sell the crop and then distribute the net proceeds of such activity on an annual basis.
