An Empirical Analysis of the Commercial Viability of Greenhouse Vegetable Farming in Ghana

Greenhouse vegetable farming in Ghana is gaining policy traction as a route to import substitution, food safety, and youth employment. Yet comprehensive investment appraisals grounded in field data are absent from the peer-reviewed literature. This study therefore seeks to fill this gap by constructing and appraising a field-parameterised financial model of a commercial 20-greenhouse vegetable enterprise situated in the Akomadan–Afrancho corridor of the Ashanti Region. The study used primary data collected through structured surveys of 120 smallholder vegetable farmers, ten key informant interviews, and direct field observation to ensure empirical grounding. Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (BCR), payback period, break-even analysis, and sensitivity analysis were utilised to assess the financial viability and risks of the enterprise. The results show strong financial viability with an NPV of GH¢838,548, an IRR of 33%, a BCR of 1.21, and a payback period of 2.4 years. The sensitivity analysis, however, revealed that a 10% reduction in price renders the NPV negative, exposing the venture's dependence on premium market access. The multidimensional financial/investment analysis approach integrated with sensitivity analysis provides a holistic framework for decision-making by all stakeholders, including agribusiness operators, banks, and development finance institutions. The study's focus on the Akomadan–Afrancho corridor in the Ashanti Region may limit its generalisability. Policies should focus on price stability and extended loan moratoriums to reduce investment risk for agribusiness operators and development finance institutions.