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HomenewsMoFA backs private sector drive to improve agricultural logistics

MoFA backs private sector drive to improve agricultural logistics

The Ministry of Food and Agriculture (MoFA) has endorsed efforts to improve agricultural logistics through private sector investment, stressing that affordable vehicle financing and reliable after-sales support will be critical to moving produce efficiently from farms to markets.

Speaking at the launch of the HOWO T3M light-duty truck by Zonda Tec Ghana in Accra on Thursday, October 15, Deputy Director of Policy Planning at the Ministry, Ruby Neils-Palme, said efficient transportation must complement efforts to increase agricultural production under the government’s Feed Ghana Programme.

She noted that higher production alone would not deliver the desired economic benefits without effective systems for transporting, storing, processing and distributing produce.

“How do we move agricultural produce from where it is grown to where it is needed, at the right time, in good condition and at an affordable cost?” she asked.

Background: Post-Harvest Losses and the Feed Ghana Programme

The Ministry’s emphasis on logistics comes against the backdrop of significant post-harvest losses in Ghana’s agricultural sector. Nationally, 30% to 50% of produce is lost after harvest, with losses rising to over 54% for perishables such as tomatoes and leafy greens. These losses are primarily due to poor rural transport infrastructure, lack of cold chain systems, insufficient storage, and inefficient aggregation. Ghana loses close to or over US$100 million annually in its rice value chain alone due to post-harvest inefficiencies.

The Feed Ghana Programme, introduced in April 2025, is the government’s flagship initiative to increase domestic food production, reduce import dependence, and create jobs. Under the programme, the government has procured 300 metric tonnes each of maize seed and Agyapa rice seed for distribution to farmers, acquired 96,000 litres of organic fertiliser, and engaged 500 District Feed Ghana Brigade Officers to improve farmer registration and extension services. A GH¢245 million allocation was made to the agriculture sector in the 2026 Budget to scale up food security and agro-industrial value chains.

The Minister for Food and Agriculture, Eric Opoku, has previously highlighted the paradox of Ghana’s over US$3 billion annual food import bill despite its vast agricultural potential, coupled with an estimated 30% post-harvest loss due to weak storage, logistics and processing systems.

Financing: A Major Barrier for Farmers

Neils-Palme said financing remains a major consideration for farmers and agribusinesses that need transport but may struggle to meet the full purchase price of a vehicle. She proposed financing arrangements such as leasing and hire-purchase, alongside partnerships involving vehicle suppliers, banks, insurers and agricultural enterprises, to make commercial transport more accessible.

Vehicle leasing solutions are already available in Ghana through institutions such as Leasafric Ghana PLC, which offers operating lease and finance lease options for agricultural equipment and commercial vehicles, helping businesses stay mobile without heavy upfront capital. Oikocredit has also provided a GH¢10 million term loan to Leasafric to develop an agri-leasing product providing agricultural equipment to smallholder farmers in northern Ghana.

Cooperatives and Shared Transport

The Ministry also highlighted opportunities for cooperatives and producer groups to share vehicles, while specialised transport businesses could help farmers collect and deliver produce on schedule.

Research from KNUST’s Carisca initiative supports this approach. The study found that cooperative societies can provide a unified front for negotiating transportation and storage services, as individual farmers have little bargaining power. Collaborative transportation among farmers along the same farming routes can lead to better negotiating capacity and higher utilisation of transport capacity, especially during peak seasons. However, only 20.4% of farmers interviewed reported that collaborative transportation was a usual practice, with 41.2% hardly involved in any such arrangement.

After-Sales Support Critical During Harvest

The Ministry further stressed the need for dependable after-sales services, including spare parts, trained technicians, warranties and maintenance support, warning that vehicle breakdowns during harvest periods could disrupt deliveries and lead to produce deterioration.

This concern is particularly relevant given the perishable nature of many agricultural commodities. Mango traders in Ghana have reported rising post-harvest losses and sourcing costs, with consumers demanding fruit but orchard management and guidance on ripening practices remaining issues. For perishable crops like tomatoes and leafy greens, losses exceed 54% due to poor rural transport infrastructure and lack of cold chain systems.

The HOWO T3M Truck

The HOWO T3M is a light-duty truck available in cargo and box-van configurations, targeting businesses requiring transport for goods and supplies. The truck range includes payload capacities of 2.7 tonnes, 5 tonnes, 8 tonnes and 12 tonnes, available in open-bucket and cargo configurations to meet different commercial transportation needs.

HOWO is a truck brand under China National Heavy Duty Truck Group (SINOTRUK), which operates a dedicated light-duty truck business serving logistics and other commercial applications. According to Sinotruk representatives at the launch, the HOWO T3M was developed to respond to the transportation demands and operating conditions of the Ghanaian market, incorporating heavy-duty engineering experience to provide durability, comfort and reliability for businesses operating under challenging road and loading conditions.

The trucks on display were assembled in Ghana, with engineers from the manufacturing side training Ghanaian engineers in the assembly process. Zonda Tec CEO Yang Yang said the initiative aims to fill the gap in training Ghanaian auto engineers.

Looking Ahead

The Ministry said further engagement with agricultural operators would help establish the truck’s suitability for different commodities, routes and operating costs, as well as the availability of technical support.

The launch comes as Ghana seeks to strengthen agricultural value chains and ensure that increased production translates into better market access, stronger business activity and improved returns for farmers. With the Feed Ghana Programme targeting increased domestic production and reduced import dependence, the development of efficient logistics infrastructure and accessible vehicle financing will be essential to ensuring that farmers can move their produce from farm gates to markets in a timely and cost-effective manner.

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