Ghana Market Backgrounder
11 December 2008 Agriculture is all-important to the economies of most African countries. It constitutes about 30% of Africa’s GDP, 50% of the total export value, and provides 70% of the population (depending on the sector) with their livelihoods.
Farmers grow crops on the same fields year after year, which has the effect of preventing the soils from regaining fertility and plant nutrients, resulting in generally low yields and incomes.
However, in some areas, crop inputs including fertilizers and crop protection products, are being used more frequently. As a growing market, West Africa in particular is now dealing with a surge of products from new companies, particularly from Asia.
Though it is growing, the input market remains under-developed. Africa consumes the least amount of inorganic fertilizer, with an average of 20 kilograms (NPK) per hectare (kg/Ha). The Sub-Saharan region consumes the least, with an average of just 8 kg/Ha.
The procurement of fertilizers and crop protection products is completely liberalized. Importers are required to communicate their intended orders to the appropriate authorities for monitoring purposes.
Controls Needed
Recently, the entrance of many companies from China, India, and others from the Far East has been strong. However, some of these new entrants into the market do not focus on sustainable market development, which is not good for Africa’s long-term potential. One of Africa’s major problems involves fake or counterfeit agri-inputs. The incidence is over 15% in Ghana, according to resources within CropLife Ghana.
Awareness programs to sensitize the farmers and dealers on the menace of adulteration and its effects on the economy and environment are underway.
In addition, Africa is now more safety and environmentally conscious, as pesticide use continues to grow. CropLife Africa-Middle East, in collaboration with its respective hubs and governmental agencies, organizes Safe Use and effective handling training for dealers, importers, and policy makers.
Reaching The Market
The Plant Protection and Regulatory Services Directorate (PPRSD) of the Ministry of Food and Agriculture (MOFA) is the department responsible for pesticide policy, monitoring sales and safe use, registration, regulation, and other such issues in Ghana. They coordinate these activities with key players such as the Customs, Excise and Preventive Services (CEPS) office and the Environmental Protection Agency (EPA).
Agri-input importers must register with the EPA, obtain import licenses, and be members of CropLife Ghana. Retailers and distributors receive products from importing companies, and at times themselves import in smaller quantities.
Sustainable Growth
There is existing potential for the expansion of the market for pesticides in Africa. However, to do so will require farmers to understand safe and proper use of inputs, and recognize enough gains to increase their use of inputs.
In addition, the current chaotic entry by many new companies into the market will not be sustainable. Suppliers will have to be evaluated and scrutinized. To maintain a sustainable model of development that is good for Africans as well as Africa’s trade partners, there is a need to regulate and control entry into these growing African markets.
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