Experts are anticipating potential import inflation on food commodities in Ghana due to the withdrawal of Burkina Faso, Niger, and Mali from the ECOWAS bloc, according to a report by B&FT.
Global Credit Rating (GCR), a subsidiary of Moody’s, suggests that the departure of these three countries from ECOWAS will lead to inflationary pressures in the domestic markets of these countries, influencing the prices of food commodities imported by neighboring nations like Ghana.
The GCR predicts restricted movement of people and reduced trading across borders, fostering commodity hoarding and subsequent price hikes. The withdrawal is also expected to weaken economic development in the Sahel nations, which are already among the world’s poorest.
Ghana heavily relies on Burkina Faso for fresh tomatoes, with 90 percent of imports coming from the country. The Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) reveals that Ghana’s annual consumption demand for fresh tomatoes exceeds 800,000 metric tonnes. Trade data from the Ghana Vegetable Producers and Exporters Association indicates an annual import value of around US$400 million worth of tomatoes from Burkina Faso.
Burkina Faso and Mali contribute to nearly 70 percent of Ghana’s livestock imports, while Niger plays a significant role in the regional dry onion market. The Peasant Farmers Association of Ghana (PFAG) notes that Mali has been increasing its exports of beans, millet, and corn to Ghana in recent years.
Market analysts anticipate an impact on prices, with the cost of imported tomatoes and other commodities potentially doubling in the coming weeks. To address these challenges, agriculture sector stakeholders are advocating for increased support to research institutions for seed development in greenhouse environments, mechanized irrigation, and better access to capital to mitigate the impact of changing climate circumstances.
Source: Ghanaweb
