Labor, Mechanization, and Private Sector Development
Mechanization is considered to be critical to transforming agriculture in Africa. Apart from mechanization being a part of the vision of modernizing agriculture, reducing drudgery is also a major consideration. Farmers also universally demand tractor and other mechanization services, but it is not clear why the private sector has not adequately developed to meet the demand. The government Ghana currently subsidizes the establishment of private mechanization centers.
Building on last year’s study on mechanization as well as the evaluation of MoFA’s Establishment of Agricultural Mechanization Services Centers (AMSEC) program, the objective of this activity is to clearly understand the role of mechanization in transforming agriculture and examine various options for facilitating the development of a market for mechanization services. The activity will examine the following:
- Drivers of area expansion in Ghana (e.g., mechanization and population growth) and potential labor replacement effects
- Labor supply and relationship between rural and urban wages
- Effective ways to subsidize the development of mechanization services