Ghana spends GHc760 Million annually on tomato imports – Report

A new report commissioned by the Chamber of Agribusiness Ghana (CAG) has revealed that Ghana spends about GH¢760 million annually on tomato imports.

According to the Chamber, the figure covers more than 75,000 tonnes of fresh tomato fruit imported each year, in addition to over 75,000 metric tonnes of tomato paste brands brought into the country.

The report follows earlier disclosures by the Vegetable Producers and Exporters Association of Ghana, which indicated that in 2022 alone, Ghana imported tomatoes worth GH¢400 million from Burkina Faso.

However, CAG argues that the broader economic impact of the tomato trade is far greater. It estimates that the total cost to the economy could reach GH¢5.7 billion when factors such as direct import expenses, tax revenue losses, post-harvest losses, wage losses and security-related costs are taken into account.

Citing its data, the Chamber noted that Ghana is currently ranked as the world’s second-largest tomato paste importer after Germany. It estimates that the country loses approximately GH¢220 million each year in uncollected income taxes, VAT and corporate taxes due to an estimated 250,000 potential jobs that remain unrealised as a result of heavy reliance on imports.

CAG further stated that about GH¢250 million worth of locally grown tomatoes rot annually because of inadequate cold storage infrastructure, representing roughly 45 percent of domestic production.

In addition, the Chamber estimates that some GH¢4.5 billion in potential wages that could be earned by 250,000 Ghanaians in a fully developed tomato sector is lost each year, with the economic benefits instead accruing to foreign farmers and processors.

“These numbers are devastating,” said Anthony Morrison, Chief Executive Officer of CAG. “We’re not just losing foreign exchange; we’re losing an entire generation’s employment opportunities,” he added.

CAG also described recent security challenges in Burkina Faso as a wake-up call, stressing that Ghana should not continue to risk lives and livelihoods for tomatoes that can be grown competitively at home.

The Chamber pointed out that only about seven percent of tomatoes processed locally are sourced from Ghanaian farms, with the remainder being imported bulk paste that is repackaged.

“We have the technology and market demand, but not the consistent local supply. The CAG has a strategy: focus on production, quality and cold chain which will finally enable local processing of Ghanaian tomatoes, creating thousands of factory jobs,” the report stated.

According to CAG, implementing this strategy would require an estimated GH¢3.2 billion investment over five years. However, it projects that the intervention could yield economic returns exceeding GH¢5 billion by 2030.