Finance Minister Dr. Mohammed Amin Adam has cautioned that Ghana could face increased 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 in Accra on Monday, August 26, Dr. Amin Adam expressed cautious optimism about securing the nation’s food supply but acknowledged the potential economic impact of importing food to meet market demands.
Dr. Amin Adam noted that food inflation dominates the country’s inflation basket, and any shortage in food supply could lead to a significant increase in inflation rates. He added that the need to import food would place additional pressure on the already struggling cedi, driving up demand for foreign currency and exacerbating the exchange rate against the dollar.
The Finance Minister also mentioned that he has yet to discuss strategies for sourcing food with Agriculture Minister Bryan Acheampong, although he hinted that importing food might be necessary to stabilize the market and provide relief.
Northern Ghana is currently experiencing a severe drought that has lasted over two months, raising concerns about food security and the livelihoods of thousands of farmers in the region. Dr. Amin Adam emphasized that the drought would have widespread consequences for the economy, affecting it in multiple ways.
