Finance Minister Dr. Mohammed Amin Adam has cautioned that Ghana may face an increased demand for foreign exchange if the ongoing drought in Northern Ghana forces the country to import food to supplement existing supplies.
During a press conference in Accra on Monday, August 26, Dr. Amin Adam expressed cautious optimism about making significant progress in securing the nation’s food supply.
However, he acknowledged that importing food to meet market demands could have adverse economic effects.
He also mentioned that he has yet to discuss the most effective strategies for sourcing food with Agriculture Minister Bryan Acheampong to stabilize markets and provide necessary food relief.
Dr. Amin Adam pointed out that food inflation significantly influences the inflation basket, warning that any food shortage would likely lead to a rise in inflation.
The Finance Minister noted that while the Agriculture Minister has avoided explicitly mentioning imports, Ghana already imports a significant portion of its food.
Consequently, if the country needs to import more food to meet additional market demands, it will require foreign exchange, potentially increasing demand for the U.S. dollar and putting further pressure on the Ghanaian cedi.
He emphasized that the drought would have broad economic repercussions, affecting multiple sectors.
Northern Ghana is currently experiencing a severe drought, raising concerns about food security and the livelihoods of thousands of farmers.
The region has been without rain for over two months, severely stunting crop growth and leaving farmers with little hope for a successful harvest.
