All over the world, the agriculture sector plays a crucial role in human life and in the global economy – whether small or big economy. Primarily, its goals are to satisfy the food demand and provide industries with raw materials.
Problems in agriculture usually lead to social tensions and instability in society. Therefore, its development is controlled in all countries one way or another. However, in certain countries, the significance of agriculture is more obvious.
In Ghana, the agricultural sector is ‘well-established’ and provides formal and informal employment thanks to the cultivation of various types of crops across different climatic zones.
The major products that the industry produces include cocoa, grains, palm oil, tobacco, rubber, cotton, sugar cane, and timber. The government of Ghana realizing the importance of agriculture in the economy is enhancing the industry by implementing modern farming technologies and ag monitoring methods.
To understand why countries should not neglect agricultural impact on the economy, we will go through the main reasons this industry is so vital in the economy of Ghana.
Agriculture sector’s importance in the economy of Ghana
Agriculture is the primary supplier of raw materials
Sugar, cotton, palm oil, and wood are among the many valuable raw materials agriculture provides. And all of those are critical for the production process in other major industries, including pharmaceuticals, plastic, diesel fuel, and other products manufacturing.
The dependence of the overall country’s production on agriculture-provided raw materials is so strong that its economic health very much relies on the number of raw materials it has at its disposal.
It feeds the population
Last but not least, the importance of agriculture lies in food supply worldwide. Farming is what feeds the people and prevents hunger. And that is especially critical now when the world population is rapidly growing.
That is why countries, including Ghana, strive to become more sustainable in the agricultural sphere to ensure sufficient food supply while minimizing resources in its production.
It plays a huge part in the country’s export earnings
Most developing countries rely on agricultural products exported in their foreign trade, hence receiving most of their national revenue.
And even though the economies of developed countries are not as dependent on agriculture when it comes to trade, they would still feel a staggering difference without its input.
It improves rural development
It’s evident that for the countries with low-income levels, investment in agriculture, especially in small-scale farming, is more effective for reducing poverty than investing in any other industry, as it allows the rural areas to benefit from its main assets – land, and labour directly.
People can become agriculture specialists, combine farming with other more profitable non-agricultural activities (individual entrepreneurship, rendering services, etc.), or completely abandon agriculture and engage in other activities. All of this consequently improves the quality of life in rural areas.
It provides workplaces
Agriculture is one of the biggest job providers worldwide, especially in developing countries. And it covers not only farmers but also scientists, experts, technicians that perform farm equipment maintenance, and many others, ensuring workplaces for different specialists. This significantly reduces the unemployment rate and poverty in many countries.