Ghana imports palm oil despite being the birthplace of the oil palm

Once a symbol of prosperity and self-sufficiency, Ghana’s oil palm industry has fallen into decline — forcing the country to import over 100,000 metric tons of crude palm oil annually to meet domestic demand. Despite fertile soils, favorable rainfall, and a long tradition of cultivation, production remains far below potential. Smallholders, who supply up to 80% of the fresh fruit bunches, still rely on outdated presses that lose nearly half of the extractable oil, while the sector suffers from low yields, poor technology, and chronic underinvestment.

Ironically, the oil palm — native to West Africa — was first exported from Ghana to Southeast Asia, where Malaysia and Indonesia transformed it into a multi-billion-dollar export industry. Today, Ghana lags behind its Asian counterparts, cultivating about 350,000 hectares of oil palm plantations but achieving yields of only 4–6 tons per hectare, compared to a potential 15–22 tons under optimal management. Ageing farms, limited access to improved seedlings, weak extension services, and the lack of long-term financing continue to undermine productivity.

For most farmers, access to finance remains the greatest obstacle. Commercial banks are reluctant to offer long-term credit because of the crop’s lengthy maturity period and price volatility, while microfinance institutions charge interest rates too high for tree-crop investment. Without affordable capital, smallholders cannot replant, fertilize, or modernize their processing systems — leading to stagnant yields and declining incomes.

Experts argue that Ghana’s palm oil revival depends on coordinated state intervention and private-sector investment. The newly established Tree Crop Development Authority (TCDA) is well-positioned to bring together farmers, processors, financiers, and development partners under a unified strategy. Key priorities include introducing sustainability certification, digital farm monitoring, blended-finance tools, and a dedicated Tree Crop Investment Fund. Analysts say such measures could help revive Ghana’s “golden crop,” boost rural livelihoods, and reduce the nation’s dependence on imported palm oil.

Tags: palm oil, Ghana