The Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has reaffirmed the government’s commitment to rural industrialisation as a means to reduce production costs and create jobs in agribusiness communities.
Once finalised, the policy is expected to form a key part of the government’s broader strategy to industrialise agriculture, minimise post-harvest losses, and enhance rural employment.
The minister highlighted major outcomes from the recent National Agribusiness Dialogue held on July 28. She disclosed that the government is developing a policy framework to offer incentives to businesses that establish agro-industries in rural areas.
“At the policy, we will incentivise people who want to site their industries in rural areas. We think that it will reduce the cost of projections. See the sort of waste that comes after production,” she said.
Ofosu-Adjare explained that locating agro-processing facilities close to raw material sources would significantly cut transportation costs and provide local employment.
“If you site your industry where the raw materials are, it is going to be cheaper for you, and also create jobs for people who do the production,” she noted.
She used cashew production as an example, saying: “Imagine you are into the production of cashew nuts — it is cost-effective to put a factory, for example, in Techiman North, because all the waste will be here, instead of transferring everything to Accra. The cost of transportation will be high, and at the end of the day, your cost of production will be high.”
The minister also stressed the need to create opportunities across the agribusiness value chain, especially for the youth who may not be interested in farming.
“If we do the farming, it will be fair that our children also get to do the agribusiness part of it, especially those who are not interested in the farming aspect,” she said. “So, we are encouraging people to put their industries where the raw materials are.”
Regarding the form of incentives under consideration, Ofosu-Adjare said discussions were ongoing, but confirmed that machinery waivers for agro-processing facilities were among the options.
“At the end of the policy, I am sure the type of incentive will be solidified, even though the president mentioned the waiver on machinery for agro-processing. I think that the map will be done with the Minister for Finance,” she added.
