The Finance Minister, Dr. Mohammed Amin Adam, has raised concerns about a potential spike in demand for foreign exchange if the country is forced to import food due to the ongoing drought in Northern Ghana. Speaking at a press conference on Monday, August 26, in Accra, Dr. Amin Adam stressed that while there’s hope for securing the nation’s food supply, relying on food imports could strain the economy.
He acknowledged that the drought, which has gripped Northern Ghana for over two months, poses a serious threat to food security. The dry spell has stunted crop growth, leaving farmers worried about a poor harvest and raising alarms about food shortages across the region.
Dr. Amin Adam emphasized that importing food to make up for the shortfall would not only affect local food prices but also increase the country’s reliance on foreign exchange, putting further pressure on the cedi. He explained, “If we need to import food to stabilize the market and provide food relief, it could drive up inflation, especially since food prices make up a significant part of the inflation basket. And with the cedi already weakening against the dollar, additional demand for foreign currency could worsen the situation.”
The Finance Minister noted that he is yet to discuss the best course of action with Agriculture Minister Bryan Acheampong but highlighted that Ghana already imports a significant portion of its food. “The drought is already having far-reaching effects on the economy, and if we’re going to supplement our current food supply with imports, it will undoubtedly increase the demand for dollars,” he said.
Dr. Amin Adam’s remarks come as the government grapples with how to tackle both the drought and its potential economic fallout. The extended dry spell in Northern Ghana has left thousands of farmers in a precarious situation, with many facing the possibility of poor harvests and worsening food security.
In closing, he emphasized, “The drought’s impact will be felt in many ways, and its ripple effect on the economy is something we must prepare for.”
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