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Promoting the Development of Food Value Chains in Africa 2015 - Ghana 3-4 PROMOTING THE DEVELOPMENT OF FOOD VALUE CHAINS IN AFRICA 2015 - GHANA March 22, 2016 Prepared by Promar Consulting PROMOTING THE DEVELOPMENT OF FOOD VALUE CHAINS IN AFRICA 2015 - GHANA March 22, 2016 Prepared by Promar Consulting PROMAR CONSULTING For further information about this report, please T: +81 (0)3 6222 0003, F: +81 (0)3 3206 0004 contact: www.promarconsulting.com No. 3 Ishibashi Bldg. Suite 600, Ayako Kuroki 1-10-12 Shinkawa Chuo-ku [email protected] Promoting the Development of Food Value Chains in Africa - Ghana Promar Consulting FOREWORD This report reflects the findings of Promar Consulting’s research on Sub Saharan African food value chains conducted under the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF) project “Promoting the Development of Food Value Chains 2015”, part of its Bilateral Business Development Assistance program for Africa. This report focuses on Ghana and Promar Consulting’s work on Kenya and South Africa’s food value chains can be found in separate reports. While there is a continued need for assistance focused in the fields of agriculture, forestry and fisheries, MAFF also recognizes that the markets of Sub-Saharan Africa, with their increasing populations and growing economies, are promising markets with high future potential. MAFF believes that information and analysis of the present situation and future challenges in food value chains in Sub-Saharan African countries is essential for helping Japanese companies successfully enter these markets and integrate Sub Saharan Africa into global food chains. It was against this background that this project was launched. This 2015 project also included a business mission to Kenya with public and private sector participants, a workshop conducted in Nairobi and support for bilateral policy dialogues. A summary of these activities as well as the findings on Ghana and South Africa are all outlined in separate reports and are available for your reference. Ghana is a country that mainly exports cacao beans and gold. Since the discovery of oil deposits in 2007 the country has shown a remarkable economic growth. Along with the increase in urban population, the middle class has expanded, which made Ghana one of the Lower Middle Income Countries in 2010. The government of Ghana aspires to be a Middle Income Country by 2020 through its national development plan. Political environment in Ghana has been stable, which gives the country geographic and economic advantages to be the physical distribution hub in West Africa. In the food sector, the country enters the new phase of expansion of modern retail businesses and construction rush of shopping centres, which is expected to accelerate as the middle class further expands. On the other hand, rain-fed dependent agriculture faces a significant challenge of instable supply, boosting the import of food products such as rice, sugar and meat. Business opportunities are expected in improvement of use of inputs through partnership with NGOs to improve productivity, provision of quality materials and equipment to exporters, and introduction of equipment to retailers to help build cold chain. This report is intended to make useful information on Ghana’s FVC widely available to Japanese businesses and international organizations interested in Ghana. This report gives an overall picture of Ghana’s food value chains, covering the agriculture, livestock and fisheries industries, as well as the systems which support them: inputs, food processing, export, domestic distribution, physical distribution, and pertinent machinery and equipment. In addition, major players acting in the FVCs and relevant government policies are described. We recognize that it is extremely difficult to assess the full complexities of Ghana’s agriculture, livestock and fisheries industries and the various food value chains within the constraints of this project. We will be grateful if readers will point out any shortcomings or errors which may be found in this report. Promar Consulting is solely responsible for the content of this report, which in no way represents the official views of the Ministry of Agriculture, Forestry and Fisheries of Japan. The core of this research is based on interviews we conducted with numerous experts and industry Promoting the Development of Food Value Chains in Africa - Ghana Promar Consulting professionals both in Japan and in Ghana, including private companies, research institutes, farmers and others. Although it is not possible to list all the names, we are deeply appreciative of their input and cooperation. We hope that those interested in Ghana’s food value chains find this report to be a useful tool to deepen their understanding of Ghana’s agriculture, livestock and fisheries industries, its food industries and relevant government policies, and ultimately benefit Japan-Ghana relations and contribute to promote cooperation for Sub-Saharan Africa development. Rie Yoshida Administrator, Corporate Director Promar Consulting Promoting the Development of Food Value Chains in Africa - Ghana Promar Consulting Promoting the Development of Food Value Chains in Africa - Ghana Promar Consulting TABLE OF CONTENTS 1 OBJECTIVES AND PROJECT BACKGROUND ................................................................................... 1 1.1 Objectives of the Project and Scope of the Study............................................................................................ 1 1.2 Ghana’s Economic Situation and Investment Climate ..................................................................................... 3 2 FOOD VALUE CHAINS AND THE GHANAIAN RETAIL MARKET ........................................................ 20 2.1 Supply and Demand of Food, and Agriculture, Livestock and Fisheries Industries of Ghana ........................ 20 2.2 The Ghanaian Food and Distribution Sectors ................................................................................................ 31 2.3 Business Development and Foreign Investment in the Ghanaian Food Value Chain ..................................... 45 2.4 Ghanaian Policy Related to the FVC ............................................................................................................... 50 3 THE GHANAIAN FVC BY SECTOR AND OPPORTUNITIES FOR JAPAN ................................................ 52 3.1 Japanese Companies Interest in Ghana ......................................................................................................... 52 3.2 FVC Business Opportunities by Product ......................................................................................................... 58 3.3 Opportunities in Cross-Sectoral Areas ........................................................................................................... 78 4 SUMMARY ......................................................................................................................... 86 Promoting the Development of Food Value Chains in Africa - Ghana Promar Consulting LIST OF TABLES AND FIGURES FIGURES Figure 1 Overview of Food Value Chains in Africa ...................................................................................................................................................... 2 Figure 2 Ghana population estimates and forecasts ................................................................................................................................................... 4 Figure 3 GDP growth and GDP by sector .................................................................................................................................................................... 4 Figure 4 Ghana’s Product and Service Trade ............................................................................................................................................................... 5 Figure 5 Ghana’s Trade by Area (2014) ....................................................................................................................................................................... 6 Figure 6 West Africa Growth Ring ............................................................................................................................................................................. 11 Figure 7 Ghana Logistics Infrastructure .................................................................................................................................................................... 13 Figure 8 ECOWAS member countries ....................................................................................................................................................................... 14 Figure 9 Ghana’s Changes in Calorie Consumption and Calorie Sources .................................................................................................................. 22 Figure 10 Food Map of Ghana (2013) ....................................................................................................................................................................... 23 Figure 11 Vegetation and soil distribution map ........................................................................................................................................................ 25 Figure 12 Soil-Crop Suitability................................................................................................................................................................................... 27 Figure 13 Value Chain of Fresh
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