Finance Minister Dr. Amin Adam has expressed significant alarm over the impact of a prolonged drought in Northern Ghana, emphasizing that the situation could severely hinder the nation’s economic progress.
The drought, which has persisted for more than two months, has raised serious concerns about food security and the well-being of countless farmers in the region.
With the lack of rainfall stalling crop growth, the prospects for a successful harvest appear grim, leaving many farmers in a precarious position.
During a press briefing in Accra on Monday, August 26, Dr. Amin Adam discussed the wide-reaching effects of the drought, noting that the crisis extends beyond agriculture and poses a broader threat to the country’s economy.
He acknowledged that even those responsible for steering the economy, including himself, are feeling the strain of this environmental challenge.
The Minister voiced his concerns, stating that the drought has dashed earlier hopes of achieving robust economic growth this year, highlighting the urgency of addressing the situation to mitigate its impact on the nation’s development.
“For those of us in charge of the management of the economy, we’re directly affected from different perspectives. Number one: Our focus as a government [after] having stabilised the economy, and we’re seeing the micro fundamentals improving day by day. We decided that we would focus on economic growth and we saw the numbers.
“Last year, [2023] ending [we had] 2.9% economic growth, the first quarter of this year, achieving 4.7% growth. We were expecting that this trend will continue till the end of the year. But we realised that one of our growth poles, if you like one of the major contributors to our growth, which is agriculture is now facing challenges.
“It simply means that our economic growth trajectory is in danger, our economic growth is in danger. We also look at it from the perspective of pricing, we have seen for some time now that inflation [is] going down from about 54% inflation by the end of 2022 to about 20% inflation in June this year [2024].”
