Ghana’s Six Point Nine Billion Cedi Oil Palm Investment Wins Industry Backing

Government’s planned six point nine billion cedi investment for an Integrated Oil Palm Development Policy has received strong endorsement from sector stakeholders who describe it as a comprehensive strategy to transform the commodity’s value chain. Samuel Avaala, President of the Oil Palm Development Association of Ghana, told the Business and Financial Times that the association was extensively consulted about the planned investment.

Finance Minister Cassiel Ato Forson outlined the policy during the 2026 budget presentation to parliament, detailing plans to cultivate 100,000 hectares of new oil palm plantations and create over 250,000 direct and indirect jobs. The policy aims to achieve self sufficiency in palm oil production while promoting gender inclusion and youth participation across the value chain.

The initiative will be implemented by the Tree Crops Development Authority in collaboration with the Oil Palm Research Institute and private sector partners. Government noted the policy is designed to position Ghana as the palm oil hub of West Africa, with support for smallholders through improved seedlings, access to finance and processing technology to ensure inclusive growth.

Beyond the six point nine billion cedi allocation, a dedicated 500 million dollar Oil Palm Development Finance Window will be established in partnership with the World Bank, other development finance institutions and Development Bank Ghana. This fund aims to break the financing challenges associated with long gestation crops including oil palm, which can take nearly seven years to reach full maturity.

The facility is expected to provide long tenure loans with a five year moratorium on both principal and interest, concessional rates and financing for up to 70 percent of project costs for qualified investors and oil palm farmers. This structure counters the reality that conventional short term commercial loans are poorly suited for crops requiring extended maturation periods.

Avaala acknowledged the budget’s approach toward oil palm development closely mirrors principles the association has championed for several years. He stated that accessible financing represents a crucial shift in agricultural policy recognizing the unique characteristics of tree crop production, saying “what we’ve been calling for” has been incorporated.

The association remains optimistic that the substantial investment and additional financing for smallholders will develop the value chain from production through refinery, processing and research to truly merit an integrated oil palm development policy designation. The Ghana Small Scale Oil Palm Producers Association also welcomed the initiative, describing it as a transformational breakthrough for the red gold industry.

Ghana currently imports nearly 200,000 metric tonnes of crude palm oil annually, costing the nation over 200 million dollars. The import dependency exists despite the country’s historical significance as a major palm oil exporter during the 19th century, particularly between the 1830s and 1890s when the Gold Coast was among West Africa’s leading producers.

Current domestic production stands at only 50,000 metric tonnes against annual consumption of approximately 250,000 metric tonnes, creating a substantial gap that drives the import bill higher. The Oil Palm Development Association of Ghana estimates that about 90 percent of cooking oils sold in the country are illegally imported, bypassing quality controls and tax obligations.

The policy targets implementation between 2026 and 2032, with initial rollout support provided next year for nurseries, outgrowers, land bank activation, long term crop financing, smallholder inclusion and value addition through local processing. The outgrower partnership scheme offers smallholders high yield seedlings, mechanization, subsidized inputs and guaranteed offtake agreements.

Experts note Ghana currently harvests less than six tonnes of palm oil per hectare, while oil extraction rates among artisanal millers range between 11 and 13 percent compared to the ideal 20 to 25 percent per tonne. The policy aims to address these efficiency gaps through technology transfer and improved practices across the production chain.

As implementation begins in 2026, stakeholders including farmers, researchers, investors and policymakers will closely monitor progress toward the ambitious targets. The National Policy on Integrated Oil Palm Development represents one of the largest single sector interventions announced in the 2026 budget, which totals 302.5 billion cedis in expenditure.

Tags: Production, investment, palm oil, oil palm, Ghana, Plantations, Integrated Oil Palm Development Policy