Dr. Isaac Abotebonu, an Economists at the International Development Economists Associates (IDEAs) has called on the Bank of Ghana to consider adopting a GoldBod-type financing model for the National Food Buffer Stock Company (NAFCO) to strengthen food security and help stabilise food prices in the country.
He made the call at a forum organised by the Integrated Social Development Centre (ISODEC), where participants explored alternative approaches to Ghana’s economic development and policy management.
Dr. Abotebonu proposed that the central bank-backed financing mechanism could enable NAFCO to purchase surplus agricultural produce from farmers during periods of high production and store the commodities as strategic food reserves.
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According to him, the stored food could subsequently be released onto the market during lean seasons when production declines, helping to ensure a more consistent supply of food throughout the year.
He said such a model could provide farmers with a more reliable market for their produce, particularly during periods of bumper harvests, while also reducing post-harvest losses.
Dr. Abotebonu further noted that the proposed mechanism could contribute to moderating seasonal fluctuations in food prices and help stabilise food inflation, which constitutes a significant component of overall inflation.
He argued that strengthening NAFCO’s capacity to purchase and store locally produced food could also reduce Ghana’s dependence on imported food products.
This, he said, could help conserve foreign exchange and strengthen the country’s external position while creating a more resilient domestic food system.
The proposal forms part of broader calls at the ISODEC forum for alternative economic policy approaches that can address Ghana’s structural challenges and promote sustainable and inclusive economic development.
By: ISODEC Communications
