Agric economist questions feasibility of gov’t fertiliser plant plan

An agricultural economist and research associate at the Institute of Economic Research and Public Policy (IERPP), Dr Kwadjo Ahodo, has questioned the feasibility of government plans to establish a fertiliser manufacturing plant, calling for greater clarity on the inputs and production strategy underpinning the proposal.

In a statement reacting to indications by the administration of President John Dramani Mahama to build a fertiliser factory, Dr Ahodo noted that while the idea was commendable, it would ultimately depend on Ghana’s access to the necessary raw materials at competitive costs. He cautioned that without clarity on the type of fertiliser to be produced and the availability of feedstock, the proposal risks being perceived as another policy statement lacking technical grounding.

Fertiliser production

He explained that fertiliser production globally revolves around three primary nutrient categories, namely nitrogen, phosphorus and potassium. According to him, each category requires specific raw materials, many of which are either scarce or expensive to source locally in Ghana. This, he argued, raises fundamental concerns about the economic viability of domestic production.

Focusing on nitrogen based fertilisers, particularly urea which remains the most widely used, Dr Ahodo indicated that ammonia is the key feedstock. He noted that ammonia is typically derived from natural gas, making access to abundant and affordable gas a critical requirement. While Ghana produces natural gas, he questioned whether existing supply levels would be sufficient to sustain a large scale fertiliser plant without driving up costs.

On phosphate based fertilisers such as diammonium phosphate, he pointed out that production depends on inputs including ammonia, phosphate rock and sulphur or sulphuric acid. He acknowledged that neighbouring Togo possesses significant phosphate deposits, which could offer Ghana some strategic advantage through regional trade. However, he stressed that uncertainties remain regarding access to other essential inputs, particularly sulphur and related derivatives.

Potash

Turning to potash based fertilisers, Dr Ahodo was more definitive in his assessment, stating that Ghana lacks the mineral deposits required for local production. He explained that key potash fertilisers are typically mined directly from natural reserves, which Ghana does not possess based on current geological knowledge. As a result, he said any attempt to produce such fertilisers locally would depend heavily on imported raw materials, raising production costs and undermining competitiveness.

He further observed that while it is technically possible to produce certain specialised fertilisers using imported inputs, such approaches may not be economically justified unless the country can secure cheaper sources of feedstock. In his view, this makes nitrogen and phosphate based fertilisers the only potentially viable options, provided that supply chain and cost conditions are favourable.

Dr Ahodo therefore called on the government to provide detailed information on the type of fertiliser it intends to produce, the sourcing strategy for raw materials and the broader economic rationale behind the project. Without such clarity, he maintained, it would be difficult for industry experts and the public to properly assess whether the initiative represents a practical industrial policy or merely a rhetorical commitment.

The fertilizer deal

The Ministry of Food and Agriculture has entered into a strategic Memorandum of Understanding (MoU) with Sentuo Group Limited to drive large-scale agro-processing, value addition, and fertilizer manufacturing across the country.

According to the Ministry of Food and Agriculture, the agreement, aligns with the vision of President John Dramani Mahama, and marks a significant step toward repositioning Ghana from a raw commodity exporter to a fully integrated agro-industrial powerhouse.

At the heart of the partnership is the development of modern agro-processing facilities and a national fertilizer manufacturing ecosystem designed to boost productivity, stabilise input costs, and enhance food security.

Speaking on the significance of the agreement, the sector minister, Eric Opoku stated, “This partnership represents a decisive shift from exporting raw commodities to building a resilient agro-industrial economy that creates value, jobs, and prosperity for our people.”

The MoU establishes a framework for the development of industrial-scale processing plants for key agricultural commodities such as cashew, maize, rice, soybean, and oil palm. It also integrates packaging, quality control, storage, and export systems to strengthen Ghana’s competitiveness in global markets.

In addition, the partnership includes the establishment of a National Fertilizer Manufacturing Plant and Integrated Input Supply System, aimed at reducing Ghana’s heavy reliance on imported fertilizers and ensuring a stable, affordable supply for farmers nationwide.

Mr. Opoku emphasised the strategic importance of this intervention, noting, “For too long, our farmers have been exposed to the volatility of imported inputs. This initiative secures Ghana’s fertilizer independence and guarantees consistent supply at competitive prices.”