Private sector urged to take advantage of agribusiness incentives

Alhaji Mohammed Muniru Limuna, Minister of Food and Agriculture (MoFA) has encouraged the private sector to take advantage of the incentives provided by government within the agribusiness sector.

Outlining some of the incentives provided by government, Alhaji Limuna indicated that tax holidays for cattle ranching, tree crops, poultry farming, fish farming, agro-processing and cash cropping are among the incentives as well as exemptions on import duties on imported agricultural inputs such as machinery or equipment and agro inputs such as fertilizers, pesticides and feed ingredients.

Alhaji Limuna told African agribusiness industrialists, business leaders, investors, policy makers, farmers and donors at the opening ceremony of the African Agribusiness Incubation Conference 2016,under the theme: ‘Turning Science into Business: Inclusive Agribusiness Incubation for Vibrant Economies.”

The African Agribusiness Incubation Conference & Expo 2016, a three-day event, spearheaded by the African Agribusiness Incubation Network (AAIN), brought together African business leaders operating in the agriculture value chain in the sub-region to discuss way forward in transforming agriculture and ensuring food security for the African continent.

Alhaji Limuna observed that there are a number of investment opportunities in the crop and livestock sub-sectors and that this investment opportunities exist in commercial scale production of various value chain for fresh and processing for both export and local markets.

Some of these include rice value chain to meet domestic needs and reduce imports, horticulture including production and supply of vegetables to the domestic and external markets, poultry to meet domestic requirements, cassava and related crops for industrial processing.

Alhaji Limuna explained that government as part of its effort to improve the agriculture sector is providing support including the government fertilizer subsidy programme, development of irrigation schemes, subsiding agricultural mechanization, especially targeting small holder farming.

He indicated that a number of key policies, including Acts and Legislative Instruments have been developed and enacted, and others currently in development are aimed at creating an enabling and conducive environment in response to the new frontiers on the sector.

“It is a well-known fact that Ghana is a global leader in best quality cocoa and the second highest producer after Ivory Coast. We also have other tree crops that offer similar potential, and need to be developed using our rich cocoa experience,” he said.

Commenting on some achievement of the country’s agriculture development, he said tractors and accessories for farm mechanization has been increased by over 400 percent from 2013 to 2016, whiles in government’s effort to increase the rate of fertilizer application, the fertilizer subsidy programme has increased from an initial quantity of 43,176 metric tonnes to farmers nationwide in 2008 to 89,000 metric tonnes in 2016, that is over 104 percent increase.

This programme, according to the Alhaji Limuna said has been enlarged and seen greater number of fertilizers distributed to farmers annually, adding that government has in 2016 added new innovations with the introduction of organic fertilizer.

“A mobile software application has also been introduced to control and regulate the distribution of the fertilisers and also reduce fraudulence and smuggling in the system and increase the coverage as any smallholder’s farmers as possible.”

He said between 2001 and 2008, newly constructed schemes enable 3,800 hectares of land to be put under irrigation. This was increased to 7,418 hectares between 2009 and 2016. The vision is to develop more irrigation schemes.

Some of these achievements have been achieved through projects developed and implemented by the Ministry such as the Ghana Agriculture Sector Investment Project fund with support of donor partners world Bank, USAID and IFAD.

He explained that government is realizing the highest potential of agriculture in the gamut of enterprises in solving the youth unemployment menace, created the youth in Agriculture programme under the MoFA.

He again explained that aging farmers’ population is also posing significant challenge to the future of farming industry, “I believe not only in Ghana but also in the West African Sub-region as a whole.”

“It is therefore important for all of us to recognise the fact that programmes aimed at attracting the youth into agriculture will be addressing both food security and national security issues.

“Therefore, nurturing youth venturing into agribusinesses with their ideas as well as start-ups is critical. The use of incubator programmes is a necessary aspect of agribusiness development.

“Over the years, the Youth in Agriculture Programme was implemented within the mainstream MoFA structure. In 205, it was decided by government to inject a new management approached for the prgramme top provide jobs on sustainable basis to absorb the increasing youth interested in agriculture.”

He revealed that the MoFA has entered into a corporative Memorandum of Understanding (MoU) to work closely with African Agribusiness Incubation Newtwork (AAIN) to create a long way agribusiness opportunities for youth interested in that sector.

“It is my hope that agribusiness incubators would become established in the agribusiness subsector to grow new and burgeoning agribusinesses,” he said.

Professor Henry Bwisa, Board Chairman of AAIN urged African leaders to use the opportunity to explore the potential to create jobs for the future through agribusiness incubation and networking beyond borders and culture to reap from our diversity.

“With the coordinated effort from the Africa Agribusiness Incubator Network, incubators continue to evolve into the solution to unemployment which now threatens a working-age population of 1.4 billion people in Africa by 2050. This working age population was at an estimated 442 million in the year 2000.”

Dr. Alex Ariho, Chief Executive Officer of AAIN explained: “ Today we join in recognising the need to share in the  ideas that take Africa forward, especially in the agricultural sector, which is now progressing towards commercialization. On the global agenda today, innovation has become the best means of fostering commercialisation.

“More than ever, Africa is responding to such alternatives such as agribusiness incubation to grow our market prospects, create jobs and give the youth as well as women and environment that can turn them into the economy drivers of tomorrow.”