An official of the Ghana Statistical Service (GSS) called for a strong import-substitution agenda for Ghana to stem the tide of food price volatility on Thursday. ’
Simon Tichutab Onilimor, a data scientist at the GSS, made this call during the launch of the 2024 report on Food Price Variability Across Regions in Ghana, with data showing vast differences in changes in food prices as one moved from one political region to another in the country.
Onilimor noted that over the years, the percentage change in the price of imported food items is usually more than twice the percentage change in the price of locally produced food items.
“This situation calls for some import substitution for these imported items, which actually drive the rapid price changes. Yes, there is a need to introduce import substitution for these multiple items,” the official urged.
He said import substitution is generally a tool that is used by countries that seek to develop, and Ghana could focus on that or adopt an export-oriented industrialization, which would also help the country to stem price volatility.
“There must be measures to stem the tide of food inflation because high food prices are the main limitation to access to food for many low-income earners,” he pointed out.
Moreover, the data scientist said that in the current economic situation that Ghana finds itself in, with exchange rate volatility having a severe impact on imported food inflation, Ghana should take steps to ensure adequate local substitutes for imported food items.
Faustina Frempong-Ainguah, the deputy government statistician at the GSS, added that the data shows a consistent rise in food prices over the past 24 months.
Frempong-Ainguah said since food constituted almost 41 percent of Ghana’s inflation basket, it means Ghanaians spend a sizeable portion of their incomes on food, and food price hikes affect their purchasing power and standard of living negatively.
She urged policymakers to take a cue from the data to introduce measures that would lessen the plight of Ghanaians.
Ghana’s food inflation increased by 2.6 percentage points to 29.6 percent, driving the inflation rate for March to 25.8 percent. Enditem
Source: Justice Lee Adoboe