Role of Agribusiness in the Development of Robust Manufacturing Sub-Sector

Abstract

Manufacturing sub-sector activities constitute an important component of total economic output in Ghana; and in many economies throughout the world. This affirms the need for leaders of various economies including Ghana to pay close and important attention to this component that could positively define and shape their respective economies; and positively enhance national development and growth. Ghana's agricultural sector has the potential to provide the requisite raw materials to positively affect performance of the manufacturing sub-sector. However, one observes fluctuations in growth of the manufacturing sub-sector in recent years. The purpose of this research was to examine how the activities of agribusiness could be effectively harnessed to provide the requisite raw materials to improve manufacturing sub-sector's performance; and contribution to national economic growth. The quantitative approach to scientific inquiry was applied to the current research. Specifically, a cross-sectional design was adapted and used in the study. This allowed the researchers to gather relevant research data over a specific period of time. Data required for the research were obtained mainly from secondary sources including research papers, newspaper publications, peer-reviewed articles published in journals, text books; Google Search Engine, financial websites such as The Global Economy.com; and electronic databases of the Bank of Ghana and Ghana Statistical Service; the World Bank and World Economic Outlook, among others. Annual data on Ghana's total gross domestic products (GDPs) and manufacturing sub-sector values denominated in Ghana Cedis for the period 2000 through 2018; and data on the world's and Ghana's total manufacturing values denominated in United States Dollars from 1997 through 2016 were used in the study. Findings from the research revealed positive, but non-significant relationships between manufacturing and the industrial sector, manufacturing and Ghana's GDP; and negative relationship between Ghana's manufacturing value and the world's total manufacturing values during the period. The findings suggested annual figures released for manufacturing activities are at variance with the sub-sector's actual performance. Ghana's manufacturing value accounts for only about 8.92% of the variation in world's total manufacturing values during the period. Recommendation was made for manufacturing development to constitute an integral part of government's scheme of programmes aimed at ensuring equitable distribution of resources and development of various communities; creating job opportunities, especially for the youth; and accelerating national development and growth. Stakeholders in the manufacturing sub-sector must ensure due diligence in the collation and release of annual data for the sub-sector to assure reliability and credibility of same. Expedition of government initiatives such as the one district, one factory concept through early identification of strategic investment partners would be useful to the course of accelerating growth in the manufacturing sub-sector. Innovation and infrastructure are essential requirements for successful implementation of any given policy on manufacturing; and therefore, deserve the attention of key stakeholders. Ghana must strive to develop robust and resilient economy; and guard jealously against her current stable political, social and economic climate to be more attractive to the international investor-community. Ghana must take advantage of implementation of the African Continental Free Trade Area (AfCFTA) agreement; and utilisation of the Eco in the West African Sub-Region to increase her manufacturing potential and growth while contributing meaningfully to national economic development.