Dr. John Gartchie Gatsi, Economist and Lecturer at the University of Cape Coast (UCC), says the Ghana Investment Promotion Centre (GIPC) needs to put in place mechanisms that will attract Foreign Direct Investments (FDIs) into the agriculture sector to speed up economic growth.
He lauded the 400 per cent increment of Foreign Direct Investment (FDI) recorded during the second quarter of this year compared with the value recorded in the corresponding quarter of 2015. However, he adds that investments in the agricultural sector has not been encouraging enough.
Out of the 51 new projects under review, only three projects fall under the agricultural sector, the manufacturing and services sectors topped with 13 and 20 projects respectively.
“African countries should structure the economy in a way that they will have programmes that give incentives to FDIs in the agricultural sector,” Dr Gatsi said.
“Much of our FDI is not directed into agriculture and agribusiness, meanwhile, we all believe that when FDI is directed into these areas, the effect will be felt in terms of employment and development of our economy in a progressive manner.
“GIPC should consider providing a generic incentive and motivation that applies to all sectors of the economy, especially the agricultural sector,” Dr. Gatsi said in an interview with the B&FT.
He added that beyond providing incentives to attract FDI to the sector, local investors also need similar motivational schemes to encourage them push resources into the sector.
Much attention hasn’t been giving to the agric sector. Last year, the sector recorded an abysmal 0.04 per cent growth rate, a decline from a revised target of 3.6 per cent for that year.
Government has blamed the decline on the crops sub-sector, “on account of the subsector’s large weight,” which recorded a -1.7per cent growth rate. Some watchers of the sector argue that growth could tumble further this year because government has yanked off GHC40 million from its 2016 expenditure.
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