January 14, 2022

The importance of Ghana’s agricultural sector for the economy

Agricultural

As a branch of the global economy, agriculture plays a crucial role in human life.

Its main objectives are to meet food demand and supply raw materials to other industries. Problems in agriculture lead to social tensions and instability in society. Therefore, its development is controlled in all countries in one way or another. However, in some countries the importance of agriculture is more evident.

As for Ghana, the country’s agricultural sector is well established and provides formal and informal employment through the cultivation of various types of crops in different climatic zones. The main products of the industry are cocoa, cereals, palm oil, tobacco, rubber, cotton, sugar cane and timber. The government of the country realizes the importance of agriculture and improves the industry by implementing modern agricultural technologies and agricultural surveillance methods.

To understand why countries should not overlook the impact of agriculture on the economy, we will review the main reasons why this industry is so vital in Ghana’s economy.

It is the main supplier of raw materials

Sugar, cotton, palm oil and timber are among the many valuable raw materials that agriculture provides. And all of these are essential for the production process in other major industries, including the manufacturing of pharmaceuticals, plastics, diesel fuel, and other products. The dependence of the country’s overall production on the raw materials provided by agriculture is so strong that its economic health depends a lot on the number of raw materials it has.

It plays a huge role in the country’s export

Most developing countries depend on exported agricultural products for their foreign trade, thus receiving most of their national income. And even if the economies of developed countries are not so dependent on agriculture for trade, they would still feel a huge difference without it.

It offers workstations

Agriculture is one of the biggest providers of jobs in the world, especially in developing countries. And it covers not only farmers but also scientists, experts, technicians who perform maintenance of agricultural equipment and many others, ensuring workplaces for different specialists. This dramatically reduces the unemployment rate and poverty in many countries.

It improves rural development

It is evident that for low-income countries, investing in agriculture, especially small-scale agriculture, is more effective in reducing poverty than investing in any other industry, as it enables areas rural communities to benefit from its main assets – land and work directly.

People can become specialists in agriculture, combine agriculture with other more profitable non-farm activities (individual entrepreneurship, service delivery, etc.), or abandon farming altogether and engage in others. activities. All this consequently improves the quality of life in rural areas.

It feeds the population

Last but not least, the importance of agriculture lies in the global food supply. Agriculture is what feeds people and prevents hunger. And this is especially critical now, as the world’s population is growing rapidly. This is why countries, including Ghana, are striving to become more sustainable in agriculture to ensure an adequate food supply while minimizing resources in its production.

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