Ghana is targeting a reduction in its annual chicken import bill with a proposed US$270 million investment aimed at expanding domestic poultry production and developing an integrated local value chain.
The investment agreement, brokered by the 24-Hour Economy and Accelerated Export Development Secretariat, is expected to strengthen production from the supply of poultry feed and day-old chicks to commercial farming, processing, cold storage and distribution.
Ghana currently consumes about 340,000 tonnes of chicken annually but imports approximately 270,000 tonnes to meet domestic demand, costing the country an estimated US$400 million in foreign exchange each year.
The scale of the import dependence has renewed calls for greater investment in local poultry production, particularly as the country seeks to conserve foreign exchange and create jobs through domestic manufacturing and agribusiness.
Speaking at the signing ceremony in Accra on Thursday, Presidential Adviser and Head of the 24-Hour Economy Secretariat, Mr Goosie Tanoh, said the proposed investment represented a major step towards building a competitive poultry industry capable of supplying a significant portion of the domestic market.
“The signing of this Heads of Terms agreement marks an important step towards building a modern, competitive and integrated poultry value chain capable of meeting a significant share of domestic demand,” he said.
He said Ghana had the natural resources, entrepreneurial capacity and market demand required to develop a viable poultry industry but continued to spend hundreds of millions of dollars importing chicken.
Under the proposed programme, investment will cover hatcheries, feed production, commercial poultry farms, processing facilities, cold-chain infrastructure and distribution networks.
The Heads of Terms agreement was signed by representatives of the 24-Hour Economy and Accelerated Export Development Secretariat, the Tony Blair Institute, Agrium Capital, Petra Pension Trust and Axis Pension Trust.
The agreement constitutes the first formal step towards implementing the investment programme, with the participating institutions committing to the development of an integrated domestic poultry production system.
Mr Tanoh said the initiative was consistent with the government’s 24-Hour Economy agenda, which seeks to expand productive activity, increase value addition and generate sustainable employment.
He said the project was also expected to create thousands of direct and indirect jobs, with young people and women engaged in agriculture and agribusiness expected to be among the key beneficiaries.
Chief Executive Officer of Agrium Capital Limited, Mr Rod Bassett, said the project would undergo a proprietary development and design process expected to take between 10 and 12 months.
He said the process would establish an integrated poultry production and operating system covering the major stages of the value chain.
According to Mr Bassett, implementation would be undertaken in three phases, with the project designed to integrate surrounding rural communities into its operations and create opportunities for local participation.
When fully operational, he said, the investment was expected to generate more than 1,000 direct jobs and over 2,500 indirect employment opportunities.
Mr Bassett said the project would also stimulate economic activity in rural communities by attracting complementary businesses, increasing household incomes and creating new markets for smallholder farmers.
Beyond reducing reliance on imported chicken, he said the initiative would support import substitution, improve environmental outcomes, strengthen skills development among young people and contribute to better nutrition through increased availability of locally produced poultry products.
The proposed investment forms part of broader efforts to strengthen Ghana’s agricultural value chains by connecting primary production to processing and distribution, with the ultimate goal of retaining more economic value within the country.
If successfully implemented, the project could provide a significant boost to Ghana’s poultry sector while helping to reduce pressure on foreign exchange and create new opportunities across agriculture, manufacturing, logistics and retail.
