In 2022, Ghana’s tomato imports from neighbouring Burkina Faso reached GH¢400million that year
A recent report commissioned by the Chamber of Agribusiness Ghana (CAG) indicates that the country’s annual tomato imports have reached a staggering GH¢760million.
This amount, according to the Chamber, is spent on direct imports of fresh tomato fruit in excess of over 75,000 tonnes as well as tomato paste brands totalling over 75,000 metric tonnes each year.
In 2022, the Vegetable Producers and Exporters Association of Ghana indicated that Ghana’s tomato imports from neighbouring Burkina Faso reached GH¢400million that year.
However, CAG said current cost implications in the tomato trade value chain are far higher and could reach some GH¢5.7billion, when considering direct import costs, tax revenue losses, post-harvest losses, wage losses, as well as security cost implications for importers.
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With the country ranked as the world’s second-largest tomato paste importer after Germany, per data from CAG, the Chamber estimates that about GH¢220million is lost annually to uncollected income taxes, VAT and corporate tax from some 250,000 potential jobs that do not exist due to import reliance.
The Chamber estimated that some GH¢250million worth of locally produced tomatoes rot annually due to lack of cold storage, constituting some 45 percent of domestic production.
According to CAG, about GH¢4.5billion in wages that could be earned by 250,000 Ghanaians if the sector were fully developed is lost each year to lack of jobs – instead benefitting foreign farmers and processors.
“These numbers are devastating,” said Anthony Morrison, CEO-CAG, who added: “We’re not just losing foreign exchange; we’re losing an entire generation’s employment opportunities”.
CAG said the recent security incident in Burkina Faso is a wake-up call, explaining that Ghana cannot continue to sacrifice lives and livelihoods for tomatoes which can grow better and cheaper at home.
The Chamber emphasised that, currently, only seven percent of the tomatoes processed are produced locally as the rest is imported bulk paste repackaged.
“We have the technology and market demand, but not the consistent local supply. The CAG has a strategy: focus on production, quality and cold chain which will finally enable local processing of Ghanaian tomatoes, creating thousands of factory jobs.”
This strategy, according to CAG, requires GH¢3.2billion over five years but will generate returns far exceeding the investment, with total economic gains exceeding GH¢5billion by the year 2030.
Source:
www.ghanaweb.com