Poverty Reduction in Ghana: The Role of Farm and Non-Farm Enterprises

Abstract

Ghana has experienced a general decline in the levels of poverty. Despite this drop, there are patches of poverty in both rural and urban with the rural setting being the worst affected. This situation emerged possibly because the kind of livelihood strategies adopted did not ensure a sustainable and complete reduction in the poverty levels across the entire country. On that account, this study examined how farm and non-farm livelihoods promote poverty reduction in Ghana. Data were from Ghana Statistical Service database. Analysis of data involved one-sample t-tests and independent sample t-tests. The study finds that, significant differences exist between rural and urban residents‟ income earnings from farm activities, non-farm enterprises and the upper poverty line. The study concludes that both farm and non-farm activities are crucial to ending poverty in Ghana. It is recommended that agriculture and non-farm enterprises be developed in both rural and urban settings respectively.