BoG to establish GHc2 Billion Fund to stabilise commodity prices
The Bank of Ghana (BoG) is set to establish a GH¢2 billion price stabilisation fund to support key commodities such as cocoa, maize, shea and groundnuts, in a move aimed at curbing price volatility and strengthening economic stability.
The fund, which has received approval from the central bank’s governing board, will be deployed during periods of price spikes to cushion consumers and help moderate inflationary pressures.
Working in collaboration with the Ghana Commodity Exchange and the National Buffer Stock Company, the initiative is also expected to improve access to liquidity for farmers, provide guarantees for aggregators and promote more structured commodity trading.
The announcement was made at the two-day National Market Actors’ Forum held in Tamale, where a representative of the Chief Executive Officer of the 24-Hour Economy Secretariat, Augustine Goosie Tanoh, described the intervention as part of broader efforts to restore macroeconomic stability.
Abdul-Nasser Alidu, Head of Strategy and Programmes at the Secretariat, noted that Ghana’s economy has in recent years faced persistent challenges, including high fiscal deficits, rising public debt, elevated inflation and the rapid depreciation of the cedi.
He explained that the 24-hour economy programme seeks not only to restore debt sustainability but also to reduce food price volatility, which remains a major driver of inflation.
He emphasised that stabilising food prices is critical to managing overall inflation and ensuring economic balance.
The forum, organised by World Vision Ghana under its THRIVE 2030 Project and themed “Partnering for prosperity: Strengthening market linkages for all,” brought together producers, processors, investors, policymakers and other key stakeholders within the agricultural value chain.
The initiative aims to strengthen market linkages, promote transparent pricing and structured trading, reduce post-harvest losses and improve incomes for smallholder farmers.
Funded in partnership with the Ghana Commodity Exchange and VisionFund, the THRIVE 2030 programme is an eight-year economic empowerment strategy aligned with the United Nations Sustainable Development Goals, particularly those focused on poverty reduction, gender equality and decent work.
Also speaking at the forum, Dr Peter Boamah Otokunor, Director of Presidential Initiatives in Agriculture and Agribusiness at the Office of the President, reaffirmed government’s commitment to policies that drive industrialisation and economic growth.
He identified infrastructure deficits as a key constraint to effective policy implementation and highlighted ongoing interventions, including the construction of feeder roads to farming communities, development of storage facilities, expansion of irrigation systems and provision of power for agro-processing.
According to him, these investments are essential to reducing post-harvest losses, promoting value addition and attracting private-sector participation in agricultural markets.
Dr Otokunor further revealed plans to introduce a digital out-grower system that will enable farmers to access inputs such as seeds, fertilisers and mechanisation services on credit, with repayment scheduled after harvest.
He said the system will incorporate data-driven traceability mechanisms to enhance transparency and support smallholder farmers’ participation in formal markets.
He added that aggregation centres, digital trading platforms and integrated commodity networks will be developed to connect producers directly with processors and buyers, improving price discovery and reducing inefficiencies linked to intermediaries.
With smallholder farmers accounting for about 95 percent of agricultural producers, Dr Otokunor stressed the need for farmer service centres and stronger private-sector involvement in input distribution to ensure broader reach and impact.
He called for sustained collaboration between government and the private sector to unlock the full potential of Ghana’s agricultural value chains and drive inclusive economic growth.
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