Agro-Processing Tax Waiver: A Strategic Masterstroke That Needs Scale to Succeed
The recent announcement by Deputy Minister for Trade, Agribusiness and Industry, Hon. Sampson Ahi, that the government will waive taxes on agro-processing machinery represents precisely the kind of bold, targeted intervention needed to transform Ghana’s agricultural sector. This initiative, revealed at the Regional Agribusiness Dialogue in Sunyani on October 13, 2025, forms part of a two-pronged government strategy to promote agro-industrialisation while working toward long-term machinery sufficiency through retooling local manufacturers like the GRATIS Foundation.
As an agribusiness stakeholder, I recognise this announcement as more than mere tax relief, it’s a strategic down payment on Ghana’s industrial transformation. When Deputy Minister Ahi noted that many industries “operate below 40 percent capacity due to limited access to raw materials,” he identified the exact bottleneck this policy can help resolve.
This tax waiver doesn’t exist in isolation; it directly fuels two cornerstone policies of this administration:
The 24-H+ Economic Agenda: By enhancing processing capacity and efficiency, we enable round-the-clock operations across the agricultural value chain.
The Feed the Industry Programme: Specifically designed to increase industrial capacity utilisation from 30-40% to 70-80% by strengthening raw material supply chains
The connection is clear: reduced operational costs for agro-processors through tax waivers → increased investment in modern equipment → enhanced processing capacity → stronger demand for raw materials from local farmers → more stable markets and prices within the value chain.
While the focus on processing machinery is commendable, true transformation requires extending this policy across the entire agribusiness value chain.
Let’s consider this:
1. Production bottlenecks: Without modern planting, harvesting, and irrigation equipment at the farm level, processors will continue struggling with inconsistent quality and inadequate raw material supply.
2. Transportation gaps: Post-harvest losses exceeding 30% in some value chains directly undermine processing efficiency and factory utilisation capacities.
3. Market connectivity: Limited cold chain infrastructure and transportation equipment prevents efficient distribution from factories to consumers.
The Chamber of Agribusiness Ghana rightly emphasised that “the real test of government’s commitment would be in the timely and effective implementation” and has called for an expedited process to make this waiver operational.
To translate this promising announcement into tangible impact, I propose this comprehensive implementation framework:
1. Immediate Action (0-3 months): Government must publish a clearer timeline and statutory instrument for the tax waiver; establish a multi-stakeholder implementation task force.
2. Short-term Expansion (3-6 months): Extend similar incentives to irrigation, harvesting, and cold chain equipment; integrate with the ongoing National Agribusiness Policy consultations.
3. Medium-term Development (6-18 months): Fully resource the GRATIS Foundation and local manufacturers to design, produce, assemble and maintain affordable machinery locally.
4. Long-term Sustainability (18+ months): Establish a robust local machinery manufacturing ecosystem with continuous innovation and skills development.
The government has taken a critical first step, but as the Deputy Minister himself admitted, “government alone cannot achieve the desired transformation”. I join the Chamber of Agribusiness Ghana in urging our policymakers to:
- Expand the scope of tax waivers to include critical agricultural production and logistics equipment.
- Accelerate implementation through clear statutory instruments and timelines.
- Resource local manufacturing through GRATIS Foundation to reduce import dependency.
- Maintain policy consistency to give investors the confidence to make long-term commitments.
This tax waiver announcement represents a watershed moment for Ghana’s agribusiness sector. By thinking bigger and acting boldly to extend these benefits across the entire value chain, we can truly reset Ghana’s agribusiness sector and build the inclusive, sustainable industrial growth that benefits all Ghanaians.
I welcome your perspectives and insights on how we can collectively advance this important policy direction.
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