The government has unveiled a National Policy on Integrated Oil Palm Development, aimed at transforming the sector into a major driver of industrialization, job creation, and export revenue.

Mr. David Henry Sagoe, the Acting Managing Director for Central Oil Mills Limited in the Twifo-Hemang Lower Denkyira District in the Central Region, expressed his pleasure for the initiative since it aims to revamp employment, increase income generation and boost the economy.

He made this assertion as Ghana's Finance Minister, Dr. Cassiel Ato Forson announced in the 2026 budget statement a significant investment of $500 million Oil Palm Development Finance Window which will be established to support large-scale and sustainable oil palm production in Ghana.

The policy targets the cultivation of 100,000 hectares of new oil palm plantations, with the potential to create over 250,000 direct and indirect jobs.

Ghana currently imports nearly 200,000 metric tons of crude palm oil annually, draining over $200 million in foreign exchange. The policy aims to reduce this reliance on imports and position Ghana as a regional leader in sustainable palm oil production by 2032.

The government has further established a $500 million Oil Palm Development Finance Window in partnership with the World Bank and other development finance institutions.

This facility will provide long-term, low-interest loans with a five-year repayment moratorium, covering up to 70% of project costs for qualified investors and farmers.

The Tree Crops Development Authority (TCDA) and the Oil Palm Research Institute (OPRI) will provide technical support and research, while the Ghana EXIM Bank will facilitate financing for organized cooperatives.

Mr. Sagoe suggested that government must increase its budget allocation to the agric sector by 10% in line with the Maputo declaration, prioritize infrastructure development such as motorable farm roads, storage facilities and provide affordable financing options for farmers to adopt modern technologies.

Overall, Ghana's efforts to tap into the potential of oil palm are seen as a strategic move to diversify the economy and promote sustainable agricultural development.

With the right support and implementation, the oil palm sector is marked to become a significant contributor to Ghana's economic growth and development.

Sompaonline.com//Eric Annan