Page 56 - AFAP Success Stories 2020

Impact of COVID-19 on agriculture in Ghana

on AFAP’s activities

Since the first recorded case of COVID-19 in China in November 2019 and its spread to over 199
countries as of March 2020, it became very clear that a further outbreak of this pandemic to other
countries would be disastrous. This is not just due to the potential loss of life but also to the greater
risk to people’s livelihoods. COVID-19 has since ceased to be a national issue and has rapidly grown
to be a global plague. The major effect of this is on both the supply and demand for food. Should
the pandemic intensify and countries continue to close their borders in their quest to curb the
spread of the disease, the global food supply chain will be affected.

The number of confirmed COVID-19 cases in Ghana has if the COVID-19 situation persists longer than anticipated.
escalated to 566 as of Tuesday, 11th April 2020: four have
been treated, discharged and tested negative, 552 cases In light of current developments, the government of
have been categorized as mild forms of the disease, two Ghana estimates a slump in projected GDP growth for
were regarded as moderate to severe cases and eight 2020 at 2.6 per cent, which is significantly lower than the
deaths have occurred. According to the Ghana Health budgeted GDP growth of 6.8 per cent for the year. Also,
Service (GHS), the regions in the country that have additional borrowing and related expenses that will be
reported cases are Greater Accra, Ashanti, Central, Eastern, incurred are likely to increase the country’s debt risk. The
Western, Volta, Northern, North East, Upper East, and unplanned increase in expenditure, particularly in the
Upper West. health sector, could adversely impact the fiscal deficit.
Government estimates that events unfolding as a result
Given that Ghana is largely an import-driven economy, of COVID-19, even with some mitigating measures, will
the persistence of COVID-19 is likely to have a substantial result in a deficit of 6.6 per cent of a revised GDP, which
adverse effect on the country’s international trade is higher than the de facto fiscal rule of five per cent
and reserves. While it is obvious that the revenue the established by the Fiscal Responsibility Law. (Economic
country would have made from export would cease until Impact of the COVID-19 Pandemic on the Economy of
restrictions on border closure are halted, it is also glaringly Ghana – Summary of Fiscal Measures and Deloitte views).
obvious that Ghana should be ready for some declining
economic growth and subsequently high unemployment In its attempt to curb the spread of the disease, the

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