Ghana expands organic fertilizer industry with new projects

Ghana is attracting new investment in organic fertilizers as the country seeks to strengthen local production and reduce its reliance on imports.

The organic fertilizer segment has remained relatively small, but several investors are now preparing new production facilities. The projects could significantly increase Ghana’s domestic fertilizer capacity.

Two major projects announced

On September 24, ABC Oyeasase Yie Ltd signed a memorandum of understanding with Ghana’s Ministry of Food and Agriculture (MoFA).

The agreement covers the construction of an organic fertilizer blending facility in the Eastern Region. The project is valued at $50 million and is expected to produce 500,000 tonnes annually, according to the ministry.

Earlier, on July 28, Omanbapa AgriTech also signed an agreement with MoFA for a new organic fertilizer plant.

The company is considering locations in the Ashanti or Ahafo regions. The project is estimated at $10 million and will initially produce between 20,000 and 30,000 tonnes annually.

Production could later increase to 60,000 tonnes per year. The company also plans to use agricultural waste, including maize husks, as raw material for the facility.

Together, the two projects could represent a major increase compared with Ghana’s current organic fertilizer output.

Data compiled by the International Fertilizer Development Center (IFDC) estimated local organic fertilizer production at 7,883 tonnes in 2024. However, the figure was based on information from only two companies when the statistics were validated.

Ghana seeks to reduce fertilizer import dependence

The new investments come as Ghana tries to strengthen its domestic supply of agricultural inputs.

MoFA has specifically linked the ABC Oyeasase Yie project to efforts to reduce the country’s dependence on imported fertilizers.

According to IFDC’s 2025 statistics, Ghana imported 554,457 tonnes of fertilizers in 2024. Organic fertilizers accounted for less than 1% of the total.

Most imports consisted of mineral fertilizers such as NPK, urea, ammonium sulfate and potassium chloride. Some of these products are later blended locally before being distributed to farmers.

This dependence exposes Ghanaian farmers and public finances to changes in international fertilizer prices.

Global prices add pressure

The issue is becoming more important as fertilizer markets face higher costs and supply risks.

In its Commodity Markets Outlook published in April, the World Bank projected that global fertilizer prices could rise by more than 30% in 2026.

The forecast was linked partly to disruptions affecting maritime transport around the Strait of Hormuz. The strategic corridor handles almost one-third of global maritime fertilizer trade, representing around 16 million tonnes annually.

Ghana has also changed the way it supports farmers.

In March 2026, the government announced that it would replace its fertilizer subsidy system with free fertilizer distribution during the farming season.

The measure is designed to encourage fertilizer use by removing the cost paid by farmers. However, it also means that the government bears a larger share of procurement costs in a volatile international market.

Organic fertilizers offer another option

The expansion of local organic fertilizer production could therefore help Ghana diversify its fertilizer supply.

The new plants are not expected to completely replace imported mineral fertilizers. Instead, they could increase the availability of locally produced inputs while reducing part of the country’s exposure to international markets.

They could also create new opportunities to turn agricultural waste into useful products.

For Ghana, the development of this sector could therefore support local fertilizer production, improve the use of agricultural residues and gradually reduce dependence on external supplies.

source:https://www.agenceecofin.com/

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