Ghana Plans Law Forcing State Buyers to Purchase Food from Local Farmers
Ghana · AGRICULTURE
Key Facts
- —The country Ghana is a West African democracy of about 35 million people, with an economy of about US$114 billion in 2025, slightly larger than Luxembourg’s (World Bank).
- —Why it matters Ghana is a major gold and cocoa exporter, yet it still imports much of its rice, poultry and tomatoes, draining scarce dollars.
- —Why now Finance Minister Cassiel Ato Forson said on 1 October 2026 that the government will change the procurement law, as fertiliser and freight costs rise.
- —What happened The proposal would require anyone spending public money on food, such as schools, hospitals and the military, to buy from Ghanaian farmers.
- —The numbers The school feeding budget is about GH¢3 billion (about US$256 million), according to the Business & Financial Times, a Ghanaian business paper.
- —What it means for you Food importers and caterers selling to the state face new limits; local aggregators, storage and logistics firms could win contracts.
- —Still open No bill text or timetable has been published, and Parliament must still pass the amendment.
Ghana plans to change its public procurement law so that state bodies buying food must buy it from Ghanaian farmers, keeping public money and jobs at home.
Ghana’s government wants to rewrite its public procurement rules so that institutions spending public money must buy food from Ghanaian farmers. Finance Minister Cassiel Ato Forson announced the plan on Thursday, 1 October 2026.
Ghana, a West African country of about 35 million people, earns most of its export income from gold, cocoa and oil. Yet it still spends scarce foreign currency importing staple foods such as rice, poultry and tomatoes.
What the minister said
“We are proposing changes to the procurement laws to require those spending public money to buy food from Ghanaian farmers,” Ato Forson said, as reported by MyJoyOnline. “Government money must support Ghanaian farmers and create Ghanaian jobs,” he added.
Public procurement covers everything the state buys, from school meals to hospital food and military rations. A local-sourcing rule would turn that routine spending into a guaranteed market for Ghanaian producers.
The idea is not entirely new. In April 2025 Ato Forson already said the government would mandate local procurement for state agencies, Citi Newsroom reported at the time.
School meals are the biggest test
The clearest target is the Ghana School Feeding Programme, launched in 2005, which gives pupils in public primary schools one hot meal a day. Its budget is about GH¢3 billion (about US$256 million), the Business & Financial Times reported on 1 October.
All conversions here use 11.73 cedis per US dollar, the open.er-api.com rate on 2 October 2026. The programme was designed to spend most of its money in local economies.
A 2020 World Bank review of the programme found that meals improve nutrition and school attendance. In practice, however, caterers often buy from traders, and imported rice can end up on school plates.
The 2026 budget, presented in November 2025, already directed schools to buy Ghana-grown rice, maize and chicken, Graphic Online reported. It also added GH¢200 million (about US$17 million) to the state food buffer stock fund.
Why the import bill matters
Every bag of imported rice must be paid for in dollars, which puts pressure on the cedi, Ghana’s currency. The cedi lost much of its value during the 2022 debt crisis, which pushed Ghana into an International Monetary Fund (IMF) rescue.
The World Bank’s August 2026 Ghana Economic Update warns of new pressures on food. Urea fertiliser prices nearly doubled to US$585 a tonne by early March 2026, and freight costs have risen sharply.
The same report flags possible export curbs by key suppliers, including rice and poultry from India and tomatoes from Burkina Faso. Buying at home is meant to make Ghana less exposed to such shocks.
Who gains and who loses
A local-sourcing mandate would shift bargaining power away from food importers and some school caterers. Farmer groups, aggregators and the state-owned National Food Buffer Stock Company could gain.
The buffer stock company buys surplus grain from farmers and supplies state institutions. Its ability to store, grade and deliver food at scale will decide whether the plan works.
The change would not automatically help smallholders. Storage, credit, quality checks and prompt payment have all held back local buying in school feeding before.
What it means for foreign businesses
For foreign firms, the message is that state food contracts in Ghana will favour local suppliers. Companies exporting rice or poultry to Ghanaian state buyers should expect that market to shrink.
There may be openings too. Warehousing, cold chains, food processing and agricultural finance are all bottlenecks the government needs others to fix.
The plan fits a wider trend of African governments using state purchasing to build local industry. The Rio Times series Africa: The New Scramble follows that shift.
What is still unclear
No draft bill or timetable has been published. The exact wording will decide whether the rule binds every public body or only programmes such as school feeding.
Parliament, where President John Mahama’s National Democratic Congress holds a large majority, must approve the amendment. Until then, the plan to reshape public procurement remains a stated intention rather than law.
Frequently Asked Questions
What is Ghana’s new public procurement plan for food?
Ghana’s finance minister said on 1 October 2026 that the government will amend the procurement law. Anyone spending public money on food would have to buy it from Ghanaian farmers.
Which institutions would be affected?
The rule targets bodies that buy food with public money, such as schools, hospitals and security services. The school feeding programme, with a budget of about GH¢3 billion (about US$256 million), is the largest buyer.
Is the change already law?
No. No bill text or timetable has been published, and Parliament must still approve the amendment.
What could stop the policy from working?
Weak storage, slow payments, limited credit for farmers and patchy quality checks have held back local buying in school feeding before.
Connected Coverage
Sources
- myjoyonline.com
- thebftonline.com
- World Bank, 10th Ghana Economic Update (August 2026)
- World Bank, Ghana School Feeding Programme note (2020)
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