Governor Addison explains why food prices went up last year

Dr. Ernest Addison, Governor of the Bank of Ghana, attributed the surge in food prices in 2024 to dry weather conditions that reduced harvest yields, impacting Ghana’s agricultural output.

Speaking at the 122nd Monetary Policy Committee press conference, he highlighted that food inflation pushed overall inflation from 23.2% in December 2023 to 25.8% in March 2024, later settling at 23.8% by year-end.

The drought affected nearly half of Ghana's 1.8 million hectares of farmland, threatening food security and farmer livelihoods. Losses in farmer investments were estimated at GHC3.5 billion, with revenue losses reaching GHC10.4 billion.

In response, the government banned grain exports, launched cash transfers to farmers, and initiated grain imports.

Additional measures included replanting programs, fast-maturing seeds, and enhanced meteorological forecasting to strengthen future resilience.