Weekly Insights – Ghana – 14/07/2017 – Nimed Capital Limited

September 20, 2020 By: Nimed Capital0 comments

THOUGHT OF THE WEEK

Investing In the Agricultural Sector

The agricultural sector is an integral part of the economy as it accounts for approximately 60 percent of the labour force. It is recognized as the mainstay of the economy with a greater impact on poverty reduction than other sectors. It is also critical for rural development and associated cultural values, social stabilization, environmental sustainability and a buffer during economic shocks.
Per thorough research, the agricultural sector contributed 7790.18 million Ghana Cedis to the overall GDP in 2016. Agriculture clearly is one of the sectors that makes a country competitive on the global stage, as such finance and investment firms as well as investors thinking of growth and sustainability of their businesses and portfolios should consider going into agric investments.
The increase in domestic consumption has resulted in the increased importation of agricultural commodities, the consumption of rice in particular has doubled in the last 5 years and will continue to increase as the population expands. Funding from investors will go a long way in boosting production locally, which will in turn increase exports and generate revenues.

Outlook

Nimed research outlook for the sector remains positive. Our outlook is premised on the current value added expansion in the agric sector. Such as the current Ghana, Switzerland $80 million arrangement at increasing cocoa production. The rise in global demand of agric commodities certainly suggest a bright future for the agricultural market.

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