Chamber of Agribusiness Ghana Urges Gov’t to Reassess $64M Grain Silo Project Over Cost and Location Concerns
The Chamber of Agribusiness Ghana has called on the government to reconsider its proposed $64 million grain silo project, citing concerns over cost, location, and potential inefficiencies.
The Chamber, in a statement signed by its CEO, Anthony Morrison, expressed doubts about the strategic alignment of the initiative with Ghana’s broader agricultural development goals.
Cost Concerns and Alternative Investments
While acknowledging the need for improved grain storage, the Chamber questioned the $64 million budget in light of Ghana’s current economic challenges.
The Chamber suggested reallocating funds to alternative agricultural priorities such as farmer support, irrigation development, post-harvest infrastructure, and agricultural research.
Location Misalignment
The proposed location for the 60,000-tonne silo in the Eastern Region was also criticized by the Chamber. Research by the Chamber indicates that regions such as Brong-Ahafo, Ashanti, Volta, and Upper West, which are major hubs for maize and rice production, would provide a higher return on investment.
The Eastern Region, primarily known for producing fruits, vegetables, cocoa, and tubers, was deemed unsuitable for such a project.
“Strategic reserve projects like this require careful consideration of location, accessibility, storage facilities, and transportation networks,” the Chamber stated, adding that poor location planning could result in inefficiencies and increased operational costs.
Urging Stakeholder Engagement
The Chamber further emphasized the importance of engaging stakeholders—farmers, traders, and agribusinesses—to ensure the project aligns with industry needs.
It urged the government to conduct a comprehensive feasibility study to assess the most suitable locations for grain silos and explore blended financing options.
Food Security and Economic Impact
The Chamber also highlighted Ghana’s ongoing challenges with food security, pointing to significant imports of rice and maize.
In 2022, the country spent $560 million on rice imports, with local production lagging behind demand. Similarly, Ghana imported $13.4 million worth of maize in 2023, underscoring the need for improved storage and production capacity.
“Investing in grain storage infrastructure is critical to reducing post-harvest losses, which account for up to 30% of crop yields,” the statement noted.
The Role of Agriculture in Ghana’s Economy
Agriculture accounts for approximately 20% of Ghana’s GDP and employs over half of the labour force, including 39% women.
Maize and rice are key staples, making targeted investments in their value chains is essential for economic growth and food security.
The Chamber concluded its statement by urging the government to adopt a more strategic and inclusive approach to agricultural development, ensuring long-term benefits for farmers and the economy.
