What is the economic importance of natural resources?

Answer 1

1. Provision of employment: Natural Resources employ the largest number of people in the country. It is estimated that about 55% of Ghanaian are employed by the sector in activities like farming, fishing, and hunting.

2. Provision of raw materials: Natural resources serve raw materials to feed most industries in the country. Cocoa is used to produce Milo and chocolate. Fish, timber, and fruits serve as raw material for some industries.

3. Provision of food: Another importance of natural resources is the provision of food to the teeming population of the country. Man cannot work for a long time without food. About 80% of foods consumed in Ghana are natural. Rice, cocoyam, fish to mention a few are products from the Agriculture sector, and are great source of energy to man.

4. Source of foreign exchange: Natural resources provide wealth that is exported to other nations to earn foreign exchange. Ghana exports products like cocoa, coffee, banana and others to UK, Germany and other counties, the proceeds from this is used to procure machines and other equipment to develop the country.

5. Provision of income: Natural resources also provide those employed in its activities income. Farmers sell their products on the market to earn income, which they need to buy manufactured goods and other to improve their standard of living.

6. Provision of medicine: Most of the medicines used to cure diseases in Ghana are made from herbs, roots and tree backs. These are provided by the Agriculture sector.

7. Energy: Renewable resources such as wind, solar, water are able to provide us with limitless energy, not forgetting the most basic form of survival (water), and the energy it provide hydroelectric power. Solar power is obtained from the sun.