By Sylvia Owusu-Ankomah, Corporate Relations Director for Guinness Ghana Breweries PLC
As I reflect on the past years, I am filled with a profound sense of pride and optimism for Ghana’s future.
In 2012, GGB PLC embarked on an ambitious journey to redefine the landscape of agribusiness in our nation. We set out to increase the use of locally sourced raw materials in the production of our premium brands—a move that was as much about business sustainability as it was about national development.
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Today, I am delighted to share the remarkable progress we have made. Our locally sourced raw materials have soared from a mere 12% in 2012/2013 to an impressive 63% in 2023, edging us closer to our long-term target of 70%. This achievement is not just a corporate milestone; it is a testament to what is possible when industry, government, and communities unite towards a common goal.
The Power and Potential of Local Raw Material Sourcing
Local raw material sourcing (LRMS) is more than a procurement strategy; it is a catalyst for socio-economic transformation. By tapping into Ghana’s rich agricultural resources, companies like ours stimulate local economies, create jobs, and transfer invaluable knowledge and skills within the agricultural sector. This, in turn, enhances the overall capabilities of our nation and positions us competitively on the global stage.
Since implementing the LRMS initiative, GGB PLC has directly engaged with 39,776 farmers across the Upper East, Upper West, Northern, Savannah, and Bono East Regions. Considering the average household size of 9.5, this initiative has positively impacted approximately 377,872 individuals—a staggering 116% increase since 2017. These numbers are not just statistics; they represent lives improved, communities strengthened, and futures brightened.
Job Creation and Economic Growth: A Ripple Effect
Our commitment to local sourcing has generated both direct and indirect employment opportunities along the value chain. Aggregators working with us have expanded their workforce, employing an average of 8 full-time male workers and 2 full-time female workers, alongside 21 male and 10 female casual workers each. This translates to nearly 452 employees directly engaged through the LRMS, up from 336 in 2019.
The indirect impact is even more profound. The number of workers indirectly employed through the LRMS has significantly improved from 5,227 in 2019 to 19,828 in 2023—a 279% increase over the period. These are real people who now have the means to support their families, invest in education, and contribute to the economy.
Empowering Farmers: The Heart of Our Success
To our farmers—the heartbeat of this initiative—I extend my deepest gratitude and admiration. Your dedication, resilience, and hard work have been the cornerstone of the Guinness Ghana LRMS’s success. We recognize that farming is not just a livelihood for you; it is a way of life, embedded with tradition and culture.Through the LRMS, we have sought to provide more than just a market for your produce. We have invested in capacity-building initiatives, offering training in good agronomic practices, climate-smart agriculture, and the adoption of improved grains and technologies. We have facilitated access to quality seeds, fertilizers, and mechanization services, and provided credit facilities to ease financial constraints.
The impact on your livelihood has been significant. Maize farmers have seen their average real incomes nearly triple from GH₵2,194.15 in 2017 to GH₵6,147.95 in 2023. Sorghum farmers have experienced a more than fourfold increase from GH₵957.30 to GH₵4,373.96 over the same period. These income gains have translated into better access to healthcare, education, and improved living conditions for you and your families.
Moreover, women in our farming communities have experienced notable empowerment. Over 90% of female farmers reported increased autonomy in decision-making, ownership of land and assets, and active participation in community groups. Your voices are essential in shaping the future of agriculture in Ghana, and we are committed to supporting your continued empowerment.
Catalyzing New Business Opportunities
The LRMS initiative has not only benefited farmers but has also spurred significant business developments within the agribusiness sector. Companies like Premium Foods have expanded their operations from grain marketing to processing, constructing new factories and contributing to value addition in the industry.
New enterprises have emerged to seize the opportunities presented by the LRMS. Awo Fields Company Limited in the Upper West region and Oyster Company Ltd in the Bono East region are prime examples of businesses that have been established since 2019, directly benefiting from and contributing to the LRMS ecosystem.
These developments underscore the potential for agribusiness to be a driver of economic diversification and industrialization in Ghana. By fostering an environment where businesses can grow and innovate, we can create a more robust and resilient economy.
A Collaborative Call to Action
Last year we signed an agreement with SNV Netherlands Development Organization to empower over 12,500 smallholder and commercial farmers, including women and youth, to produce 72,375 metric tons of sorghum within the next 5 years. We are also currently working with IDH Ghana to provide financial support of USD 300k to four aggregators, to support sorghum production and capacity building for the aggregators.
The goal is to create a thriving and sustainable white sorghum supply chain that enables farmers to view sorghum as a profitable business crop within sustainable farming systems.
Our achievements over the past decade are a testament to what can be accomplished through collaboration. However, there is still much work to be done.
To Policymakers:
Your role is pivotal in creating an enabling environment for initiatives like the LRMS to thrive. The favorable tax regimes and incentives provided by the Government of Ghana have been instrumental in our progress. Continued support through policies that encourage local sourcing, investment in agricultural infrastructure, and access to finance for farmers and agribusinesses will be crucial.
Consider implementing measures that further reduce barriers to market entry for smallholder farmers and agribusiness startups. Support research and development in agriculture to foster innovation and productivity. By prioritizing the agricultural sector, you can drive sustainable economic growth and food security for our nation.
To Industry Leaders and Agribusiness Actors:
The LRMS has demonstrated that local sourcing is not just socially responsible but also economically advantageous. I urge you to explore opportunities to integrate local raw materials into your supply chains. By doing so, you can reduce costs, mitigate risks associated with foreign exchange fluctuations, and strengthen your supply chain resilience.
Collaboration is key. Let’s work together to address challenges such as supply chain inefficiencies, lack of access to technology, and market volatility. Sharing best practices and resources can amplify our collective impact.
To Our Farmers: Partners in Progress
Your partnership has been invaluable, and your success is our success. We remain committed to supporting you through continued investment in training, resources, and market access. Your insights and feedback are crucial as we strive to improve and expand the LRMS initiative.
Embrace the opportunities for growth and innovation. Consider adopting new technologies and practices that can increase productivity and sustainability. Your role is central to feeding our nation and driving its economic prosperity.
Realizing the Sustainable Development Goals
As a business, we ensure that our sustainability implementations are ones that drive meaningful impact and aligned to Global action goals. Our Environmental Social Governance (ESG)NorthStar, the Spirit of Progress in action, have contributed significantly to several United Nations Sustainable Development Goals (SDGs):
• SDG 1: No Poverty – By increasing incomes and creating jobs, we are reducing poverty in rural communities.
• SDG 2: Zero Hunger – Enhanced agricultural productivity contributes to food security.
• SDG 3: Good Health and Well-being – Improved incomes allow for better access to healthcare.
• SDG 4: Quality Education – Higher household incomes enable families to invest in education.
• SDG 5: Gender Equality – Empowering women farmers promotes gender equality.
• SDG 8: Decent Work and Economic Growth – Job creation and economic growth are direct outcomes of the LRMS.
By aligning our business strategies with these global goals, we are not only contributing to national development but also to a more equitable and sustainable world.
Challenges and the Way Forward
While we celebrate our successes, we must also acknowledge the challenges that remain. Climate change poses significant risks to agricultural productivity. Access to financing continues to be a hurdle for many farmers and agribusinesses. Infrastructure deficits, such as inadequate storage facilities and poor road networks, hinder the efficiency of the supply chain.
Addressing these challenges requires a concerted effort from all stakeholders. Investment in climate-resilient farming practices and infrastructure is essential. Financial institutions should develop tailored products that meet the needs of smallholder farmers and agribusinesses. Public-private partnerships can play a crucial role in mobilizing resources and expertise.
A Shared Vision for Prosperity
The journey of the past decade has shown us what is possible when we harness potential within our borders. Local raw material sourcing is not just about procurement; it is about empowering people, strengthening communities, and building a resilient economy.
I am confident that with continued collaboration, innovation, and commitment, we can achieve even greater heights. Let us seize this moment to reaffirm our dedication to transforming Ghana’s agribusiness sector.
To policymakers, industry leaders, agribusiness actors, and farmers—let us forge stronger partnerships, invest in our people, and embrace the opportunities that lie ahead. Together, we can make local sourcing a cornerstone of Ghana’s sustainable development and a model for others to emulate.
The future of Ghana’s agribusiness is bright, and the time to act is now.
