A fertilizer subsidy program can boost economic growth and employment in Ghana

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Ghana’s agricultural sector has performed sluggishly in recent years, raising serious concerns about sustainability. In 2017, the Government of Ghana introduced the Planting for Food and Jobs (PFJ) program to encourage farmers to adopt new technologies. Over half the PFJ budget provides a 50% price subsidy for fertilizer, despite there not being a consensus on the impact of such schemes. A team of local PEP researchers found that in Ghana, the fertilizer subsidy program helps increase crop productivity, annual production, GDP, exports and household welfare. It is also linked to reduced unemployment and allows food industry production to meet domestic demand. However, a mechanism is needed to wean beneficiaries off the program to allow new beneficiaries to enrol. 
Find out more about the research methods, findings and policy recommendations in the following PEP publications:

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