Ghana loses GH¢5.7bn annually to tomato import dependency – CAG

Business

Els: MBN360 News

The Chamber of Agribusiness Ghana (CAG) has revealed that the country loses an estimated GH¢5.7 billion annually due to heavy reliance on tomato imports, inefficient local production systems, and weak value-addition infrastructure,

In a statement issued on Monday, February 16, the Chamber described the situation as an economic drain equivalent to 1.2% of the country’s Gross Domestic Product (GDP). The disclosure formed part of the unveiling of a National Tomato Production Strategy (2026–2030), developed in partnership with key stakeholders across the tomato value chain.

According to the Chamber, Ghana spends between GH¢650 million and GH¢760 million annually on importing fresh tomatoes and tomato paste. The country imports between 75,000 and 100,000 metric tonnes of fresh tomatoes and 78,000 to 100,000 metric tonnes of tomato paste each year, making it the world’s second-largest importer of tomato paste after Germany.

However, CAG stressed that the true cost of import dependency extends far beyond direct import bills. It estimates that Ghana loses between GH¢180 million and GH¢220 million annually in uncollected taxes, including income tax, VAT, and corporate taxes, due to an underdeveloped local industry that could otherwise generate approximately 250,000 jobs.

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The Chamber further noted that post-harvest losses remain a major setback to domestic production. An estimated GH¢175 million to GH¢250 million worth of locally grown tomatoes rot each year due to inadequate cold storage facilities, accounting for 30% to 45% of total production losses.

Beyond these losses, the broader economic impact includes an estimated GH¢4.5 billion in foregone wages that could be earned by Ghanaians if the tomato sector were fully developed. Instead, those economic benefits accrue to foreign farmers and processors supplying the Ghanaian market.

CAG also highlighted the security implications of cross-border tomato trade, referencing recent violence in Burkina Faso that has affected Ghanaian traders.

To reverse the trend, the Chamber proposed a GH¢3.2 billion investment under its National Tomato Production Strategy, aimed at transforming the sector, reducing imports by at least GH¢600 million annually, generating GH¢220 million in tax revenues, and strengthening domestic production capacity.

The Chamber maintained that urgent investment and policy alignment are critical to safeguarding national food security, protecting traders, and retaining billions of cedis within the local economy.