July 2024 Food Security Monitor report reveals a troubling escalation in food insecurity across Ghana, with the rate of insufficient food consumption (IFC) surging by 5.77%.
This increase is largely driven by the ongoing cost-of-living crisis, fueled by persistently high inflation, a weakening currency, and soaring fuel prices.
These factors have notably inflated the cost of essential commodities, particularly staples such as maize and rice.
This trend mirrors earlier projections from the World Food Programme (WFP) in their February 2024 report.
According to the WFP’s February 2024 country brief and preliminary March 2024 analysis, an estimated 1.05 million Ghanaians were expected to experience food insecurity between June and August 2024.
Contributing factors include climate change, low agricultural prices, inadequate infrastructure, and limited access to education, compounded by Ghana’s vulnerability to global market shifts, especially in the case of imported rice.
The report also highlights that, while the rate of IFC remained stable in most countries between June and July, Ghana, Nigeria, and Uganda saw increases of 5.77%, 3.98%, and 7.5% respectively. Zimbabwe, on the other hand, reported a 5.45% decrease.
On a year-over-year basis, the majority of countries have witnessed an increase in IFC, with exceptions being Mozambique, Rwanda, South Sudan, Uganda, and Zambia, where current levels are lower than those recorded a year ago.
Furthermore, the report identifies several nations as food insecurity hotspots—where more than half of the population faces IFC—including Burkina Faso (56.6%), Mali (69.1%), Niger (82.6%),and Nigeria (51.5%).
A World Economic Forum study has brought to light concerning statistics: in 2021, nearly 23.8 million tonnes (MT) of seafood, equivalent to 14.8 percent of the global production, went to waste, amid escalating worries about food security issues.
Projections indicate that by 2030, the global consumption of aquatic foods will reach a staggering 181 million metric tonnes (MT).
This surge in demand, driven by recognition of the nutritional benefits of seafood, intensifies international apprehensions regarding seafood loss and waste (FLW), prompting calls for concerted mitigation efforts.
Investigations into global aquatic FLW have identified various stages within the aquatic food value chain as culprits.
These include fish discarded at sea, fish processing on land, retail, and food services (encompassing sales and consumption in hotels, restaurants, and catering establishments – HORECA), as well as household consumption.
While the first four stages contribute to food loss, the final stage – household consumption – is classified as food waste.
This category notably arises from consumers purchasing or cooking more than they require and subsequently disposing of unconsumed food.
The United Nations Food and Agriculture Organization (FAO) defines food loss as “food that has unavoidably become unfit for human consumption, leading to a decrease in the quantity or quality of food”. Food waste is defined as “the removal of food that is still fit for human consumption by choice due to spoilage or food expiration”.
The report highlights the primary drivers of aquatic food loss and waste (FLW) along the value chain, revealing that globally, the most significant contributors are processing on land and discards from wild-capture fishing, accounting for 21.55% and 11.79% respectively. In contrast, food service constitutes the lowest percentage at 4.65%.
Furthermore, the analysis indicates that the percentage of total edible loss varies across continents. Asia records the highest at 37%, followed by Europe with 31.81%, while Oceania experiences less than 2% of edible aquatic food loss in 2021. Africa ranks fourth with 10.41%.
Comparative analysis between lower/middle income and higher income nations reveals distinct patterns: in lower/middle income countries, most aquatic FLW occurs during post-harvest and processing, while higher income nations generate large proportions of FLW during consumption. The former’s loss is primarily attributed to poor handling techniques, financial constraints limiting technological advancements, and insufficient cold storage and transportation facilities, while consumer attitudes towards waste play a significant role in higher income countries.
Recognizing the significant magnitude of global aquatic FLW, the analysis suggests several interventions to tackle the issue, including by-product utilization, investment in skills and knowledge, adaptation to market trends and diversification, adoption of emerging technologies, enhancement of infrastructure, industry collaboration, and development of robust policy and regulatory frameworks.
By-product utilization emerges as the most rational approach to reduce aquatic FLW, as aquatic foods by-products serve as valuable raw materials for various purposes, including aquacultural and agricultural feeds, compost, fertilizers, and biofuel. Additionally, they have promising applications in pharmaceuticals, cosmetics, and biodegradable materials.
Furthermore, incorporating cutting-edge technologies like blockchain, artificial intelligence (AI), big data analytics, and 3D printing offers novel potential for more effective assessment and relief of aquatic FLW.
Encouraging collaboration across different scales and stages of the value chain is also recommended, as it promotes a culture of collective responsibility for waste reduction.
Presidential aspirant for the New Patriotic Party (NPP), Kennedy Agyapong, is updating citizens on the measures he seeks to undertake to aid in the growth of the country if given the nod.
He hopes to address issues of tribalism, politicization, corruption, and food security.
On how to tackle corruption, Mr Agyapong indicated that he would implement an approach similar to that of former Nigerian President Buhari, where he would give the culprits a 6-month ultimatum to surrender.
For the Assin Central MP, Ghana is capable of feeding the entire continent.
Here are Ken Agyapong’s recent tweets for the past three hours:
The excessive tribalism and politicization won’t help our development. It must stop!
As the mid-year budget review approaches, a consensus among experts from various sectors is that while it will adhere to the framework of the International Monetary Fund (IMF) program, the government must not overlook a crucial opportunity to address persistent economic issues.
These experts voiced their opinions during a roundtable discussion hosted by the Economic Governance Platform. The session centered on the theme ‘The 17th IMF bailout: What did Ghana sign up for? Considerations for the 2023 mid-year budget review.’
They strongly emphasized that neglecting domestic concerns will only worsen negative sentiments and prolong the economic recovery process.
External debt restructuring in the footsteps of Zambia
Dr. Theo Acheampong, a petroleum economist and political risk analyst, emphasized that Ghana can draw valuable lessons from Zambia’s recent success in negotiating external debt as discussions with bilateral and private creditors continue.
Although Zambia’s debt-to-Gross Domestic Product (GDP) ratio did not decrease significantly in nominal terms as a result of the deal, the country secured a three-year grace period for principal repayment and successfully negotiated reduced interest rates ranging from 1% to 2.5%, compared to an average of 9%. These favorable rates will remain in effect until 2037.
Furthermore, Dr. Acheampong highlighted a novel conditional clause in Zambia’s debt deal, wherein interest rates can increase to 4% if the economy exceeds projections and demonstrates improved debt-carrying capacity. This innovative approach is something that Ghana should seriously consider.
Dr. Acheampong urged local authorities to promptly initiate negotiations with bilateral and private creditors and strive to conclude such arrangements before the presentation of the 2024 budget.
“The substance of the deal that Zambia has negotiated is what Ghana can look to emulate. I think we should do the same, and in the next 6 months it is possible for us to put forward and conclude some of these things ahead of the budget for 2024,” he noted.
Energy sector challenges and the delayed energy sector recovery programme
Benjamin Boakye, an energy governance expert and Executive Director at the Africa Centre for Energy Policy (ACEP), expressed concerns over the seeming lack of urgency in presenting the Energy Sector Recovery Programme (ESRP II) second phase, which should have been delivered by the end of June – describing it as “alarming”.
This comes as the potential revenue contributions from energy exports, estimated at approximately US$1.4 billion which could have alleviated the budget deficit, seem unlikely due to the falling prices of oil globally.
“It baffles me that we have not been aggressive in putting out the programme to improve under-recoveries. Even though government has pledged to address the challenges, there have been no engagements with local stakeholders… Our initial estimate of generating US$1.4billion from energy exports might not be met due to the expected price of US$88/barrel not materialising. As a result, we may face a deficit of approximately US$500million considering our half-year revenue receipts amount to around US$500million,” he elaborated.
Furthermore, imposition of the 1 percent Growth and Sustainability Levy on the gross production of companies in the extractives industry has caused consternation, as government failed to engage in good faith negotiations with the companies who have stability agreements in place, he added.
“It would have been expected that there’d be some good faith negotiations to establish a reasonable timeframe for their support in the recovery effort. Unfortunately, the power-play involved seems to have hindered progress,” he said, stating that he expects positive developments in this regard.
He also expects much-needed clarity on the ‘gold for oil’ programme. Previously, revenues were generated through the purchase of gold with a 1.5 percent tax applied.
However, this tax has been waived since the Bank of Ghana (BoG) started purchasing gold from the Precious Minerals Marketing Company (PMMC). This move has resulted in a loss of much-needed revenue, Mr. Boakye noted.
“If we are not careful, we risk institutionalising a process that makes it difficult for us to accurately track the quantity of gold produced. In the past, disparities have been observed between our export data and the import data from other countries involved in gold-buying. It is crucial to address this issue in order to ensure transparency and effective revenue management,” he added.
Food security and inflation concerns
Dr. Charles Kwowe Nyaaba, Executive Director-Peasant Farmers Association of Ghana (PFAG), for his part, called for a strong message in the interim budget to address food insecurity.
He said this is pertinent with as much as 5.2 percent of the population facing severe food insecurity, and 6.5 percent experiencing moderate food insecurity.
This comes as consumer inflation rose to 42.50 percent in June 2023 from 42.2 percent the previous month, driven primarily by food inflation which accounted for 54.2 percent of the headline inflation figure – further increasing from 51.8 percent in May.
Education disbursement regime, provision of desks and textbooks
Kofi Asare, Executive Director of Education Watch (Eduwatch), stressed the need for clarity in the disbursement regime for education grants; saying stakeholders need assurance of a clear disbursement roadmap to address accountability issues. Additionally, accumulated arrears in the education sector need urgent attention as many school administrators face financial challenges due to unpaid loans.
Mr. Asare emphasized the critical shortage of desks in the basic education sector, which is negatively impacting over two million children.
The lack of desks presents one of the most significant challenges in the basic education sector, with more than 2 million children affected. To address this pressing issue adequately, an urgent requirement for approximately 1 million dual desks has been identified.
However, Mr. Asare explained that the approved budget allocated by parliament for desks is only GH¢15 million, which falls short of the funding needed to procure the required number of desks. With this funding, a maximum of 35,000 desks can be purchased, leaving a substantial gap in meeting the students’ needs.
Furthermore, Mr. Asare highlighted that even after four years into the current basic school curriculum, textbooks are available for only 3 out of 10 subjects, and they are still limited in quantity. This exacerbates the challenges faced in providing quality education to the students.
“However, a more pressing concern arises at the junior high school level. As we enter year 3, students who are currently in JHS 2 and moving to JHS 3 at the end of this year began their education 2 years ago, yet they have not been provided with any textbooks. It is crucial to address this situation promptly as they will be writing their BECE next year,” he said, adding that the budget must address the “unrealistic” school feeding allocation.
Campaign funding
Director of Advocacy and Policy Engagement-Ghana Centre for Democratic Development (CDD-Ghana), Dr. Kojo Asante, stressed the significance of addressing the issue of campaign financing; particularly with the impending elections next year, saying leaving the space unregulated continues to breed corruption and impede economic growth. However, it is not directly within the IMF programme’s purview and is likely not to be mentioned in the upcoming interim budget presentation.
The World Bank has stated that the increasing cost of goods and services in 2022 resulted in approximately 850,000 Ghanaians falling into poverty.
The Bank said this in its latest Ghana Economic Update report titled: “Price Surge: Unravelling Inflation’s Toll on Poverty and Food Security,” launched in Accra on Wednesday.
The inflationary pressures, the Bank said, had led to a deterioration in living standards and ultimately, worsened poverty and food insecurity among Ghanaian households.
It recommended that policymakers increased efforts to restore economic stability, alleviate the plight of farmers, including the high cost of fertilizer, and widen the reach of social intervention programmes to protect the vulnerable.
The Bretton Wood Institution also recommended that in the medium-to-long-term, policy actions focused more on investments in agriculture research and technology transfers.
Such investments, the Bank said, should be aimed at helping increase domestic production and reduce production costs, while improving the quality and safety of food.
In an interview with the Ghana News Agency, Mr Paul Corral, A Senior Economist with the World Bank, said the Bank used monetary indicators to measure the annual household income and expenditure and observed that inflation had pushed a lot of people into poverty.
Speaking at the launch of the report, Mr Kwabena Gyan Kwakye, a World Bank Economist, explained that the 2022 macroeconomic shocks, particularly inflation, had more adverse impact on the poor.
He said the next two years (by 2025), where the country was expected to recover from the current economic crisis, would “be very tricky for Ghana’s poverty reduction efforts”.
“Without bringing the economy back on track, no meaningful poverty reduction can happen. Concurrently, safety nets to protect the most vulnerable need to be enhanced to ensure sustainable poverty reduction and shared prosperity,” he said.
“Expanding and increasing transfers of the Livelihood Empowerment Against Poverty (LEAP) could ensure the poorest are able to cope and build resilience to future shocks,” the World Bank Economist and co-author of the report said.
Mr Ashwini Sebastian, a Senior Agricultural Economist with the World Bank, also called for support for farmers to adjust to global demand and take advantage of market opportunities.
She said that should be a long-term focus by policymakers to mitigate the impact of inflation on food security.
“This is particularly relevant since many of the poor are farming households. Policies should, therefore, be evidence based and aimed at alleviating the different constraints farmers face,” he added.
In the 2017 Ghana Living Standards Survey by the Ghana Statistical Service (GSS), 45.6 per cent of Ghana’s population was multidimensionally poor, with 23.4 per cent others being consumption expenditure poor.
In essence, they were deprived of electricity, water, housing, sanitation, including access to toilet facilities, school attendance and attainment, nutrition and health insurance.
Mr John Foster Agyaho, a Principal Statistician, GSS, explained during a panel discussion that about a third of the items in the Consumer Price Index (CPI) basket for measuring inflation was food.
He, said it was important for the Government to prioritse connecting road networks to farmers by addressing the transportation and storage bottlenecks, and implement proactive measures to attract more youth into agriculture.
Ghana’s inflation stood at 54.1 per cent in December 2022, which was characterised by a surge in food costs, a report by GSS showed.
It was during that period that a Ghana News Agency report revealed that workers, formal and informal, had resorted to walking long-distances, riding bicycles, and engaging in carpooling to manage the economic hardship.
Meanwhile, the World Bank report signalled that Ghana’s economy would recover to its potential growth by 2025.
This is dependent on government’s implementation of structural reforms to tackle the root causes of the economic crisis, boost economic growth, and build economic resilience through the country’s US$3 billion 17th financial bailout programme with the International Monetary Fund (IMF).
“Growth will begin to recover to its potential by 2025 as drag from fiscal consolidation fades and macroeconomic stabilisation and structural reforms start bearing fruit,” Mr Pierre Frank Laporte, World Bank Country Director for Ghana, Liberia, and Sierra Leone, said.
Data from the 2022 Annual Household Income and Expenditure Survey has revealed that 49.1 percent of the Ghanaian population was food insecure in the first quarter of the year.
This represents 15.1 million of the 30.8 million persons in Ghana.
The percentage however reduced to 42.1 percent in the second quarter; 13 million of the total Ghanaian populace.
Regional basis
The Greater Accra Region recorded the lowest food insecuritywith a percentage of 27.2 percent, while the Upper East Region saw the highest of 73.7 percent.
In the first quarter of the year, the prevalence of food insecurityin four regions in the northern part of the country; Savannah (58.8%), Upper West (61.8%), North East (65.6%) and Upper East (73.7%) were more than twice that of Greater Accra Region (27.2%).
It is also observed that all regions experienced a reduction in food insecurity between quarters 1 and 2 except for the Upper West Region which saw an increase from 61.8 percent to 55 percent.
Meanwhile, Oti and Western North regions experienced the largest declines of 19.6 and 18.7 percentage points respectively.
About the Survey
The Annual Household Income and Expenditure Survey is the first nationally representative high-frequency household panel survey in Ghana.
The Survey, conducted by the Ghana Statistical Service, is being conducted to obtain quarterly and annual data on household final consumption expenditure and a wide scope of demographic, economic and welfare variables including statistics on labour, food security, multi-dimensional poverty and health status for research, policy, and planning.
The maiden publication presents highlights from the first and second quarter food insecurity, multidimensional poverty, and labour statistics reports.
Definitions of concepts (According to the GSS)
Food Insecurity A lack of available financial resources for food at the household level.
It is defined as a situation of “limited or uncertain availability of nutritionally adequate and safe food or limited or uncertain ability to acquire acceptable foods in socially acceptable waysâ€. (United States Department of Agriculture, 2000)
Moderate Food Insecurity People experiencing moderate levels of food insecurity will typically eat low-quality diets and might have been forced, at times during the last three months, also to reduce the quantity of food they would normally eat.
Severe Food Insecurity People facing severe food insecurity have likely run out of food, experienced hunger and, at the most extreme, gone for days without eating.
A research project into food safety and the drivers of food choices in selected cities in the country has established that food is available throughout the year; however, affordability, quality and accessibility are the challenges.
“Food is available; however, factors such as the season, access to food from the farms to bring to the markets and the purchasing power of consumers play a significant role in the choices consumers make in deciding on what to eat,†the report said.
The study also established that although sanitary conditions and infrastructure in the open market were poor, it was the most preferred market for consumers.
That, it said, was due to the low prices of food there, the opportunity to bargain prices, as well as the convenience such markets offered in the form of proximity to offices, homes, lorry parks, among others.
Study, workshop
The study, undertaken during different seasons in 2021, was done simultaneously at major markets in Accra, Kumasi and Tamale in three rounds of consultation with local stakeholders of urban food systems.
It was conducted by the Institute of Statistical, Social and Economic Research (ISSER)of the University of Ghana, in collaboration with an international project, NOURICITY, and aimed at investigating the structure and dynamics of urban food systems in Africa.
Funds for the research were provided by the European Union (EU) and the African Union (AU).
The stakeholders disseminated the findings of the study in a two-day workshop in Accra, during which participants discussed the way forward with the findings.
The workshop also had a partnership component aimed pooling stakeholders, including the Food and Drugs Authority (FDA), the Ghana Standards Authority (GSA), the Ministry of Health and the Food and Agriculture Organisation (FAO), to deliver the recommendations proposed.
Being replicated in South Africa and Uganda, the project is aimed at understanding what motivates people to make the choices that they make when selecting a particular food or vegetable at markets in urban centres.
Findings
Among other findings of the study is the fact that urban-dwelling households are affordability.
The report said that was explained by the types of food consumed by most households, with majority of dishes containing food items from many food groups, meaning that dietary diversity could be high in urban areas.
However, it recommended further studies into the proportions of the different food groups in a dish to consolidate the assertion on high dietary diversity.
Partnership
The immediate past Director of ISSER, Professor Felix A. Asante, who led the team in the presentation of the report, indicated that many non-communicable diseases (NCDs), such as hypertension and diabetes, were triggered by the food people consumed, hence the need to inform people to make the right choices.
He revealed that out of the 11 predominant NCDs in the country, six were dietary related.
Prof. Asante said the research would not only help establish the link among health, nutrition and agriculture but also help inform policy choices and decisions in the country.
He explained that the partnership concept was aimed at bringing together stakeholders in urban nutrition to devise and agree on a partnership process for urban nutrition.
About project
The Project Co-coordinator of NOURICITY, Dr Nicolas Gerber, said the project was a collaboration among a consortium of 24 countries, made up of 12 each in Africa and Europe.
He said the €827,000 initiative would also establish how food was handled from the farm to the market.
It would also establish some of the factors which affected food safety and offer possible solutions, he noted.
He said so far there was no credible data on food safety and quality in the value chain and said the research in the three countries would gather such data.
In particular, the project would describe the systemic drivers of food choices by mapping out formal and informal urban food sectors, their interactions and rural linkages and also track urban food sources and their characteristics, Dr Gerber added.
It would also examine individual drivers of food choices; that is, income, access to nutrition-related knowledge or food taste, habits and culture, he said.
