Dr. Amin Adam, Ghana’s Minister of Finance, has voiced serious concerns about the impact of the severe drought in Northern Ghana on the country’s economic progress.
The region is enduring an intense drought that has raised significant worries about food security and the livelihoods of countless farmers. The absence of rain for over two months has stunted crop development and diminished prospects for a fruitful harvest.
At a press conference held in Accra on August 26, Dr. Adam discussed the severe challenges facing farmers due to the drought and its broader economic repercussions. He pointed out that even those involved in economic management are feeling the strain of the crisis.
Dr. Adam conveyed that the drought has derailed hopes for continued economic growth.
He remarked, “The drought has led to substantial losses in investments, and even the current rains may not be sufficient for crop maturation. Typically, new maize would be available in Northern Ghana by now, but markets in Tamale show no maize and prices are rising.”
He highlighted that the economic management team, having previously stabilized the economy and observed improving microeconomic fundamentals, had anticipated ongoing growth. However, the current agricultural challenges pose a threat to this trajectory. “Our economic growth is at risk,” he said, noting that while inflation had decreased from 54% at the end of 2022 to about 20% in June 2024, the drought is now jeopardizing these gains.
The extended drought has led to severe declines in the production of essential staples like rice, maize, groundnuts, and millet, raising fears of a potential food crisis and imminent famine.
