Ghana to invest US$500 million to boost its palm oil industry
Ghana plans to invest US$500 million to boost its palm oil industry and reduce dependence on imports. The government disclosed the plan in its 2026 Budget and Economic Policy Statement.
Ghana ranks third in West Africa for palm oil production but still relies on imports for 30% of domestic demand. The government wants to use this new financing framework to stimulate private investment and support its long-term goal of self-sufficiency.
A long-term financing facility to boost industrial investment
The government will implement the financing facility under the National Integrated Palm Oil Development Policy for 2026 – 2032. The programme, developed with the World Bank, the Ghana Development Bank, and other development finance institutions, will offer long-term loans, a five-year repayment moratorium, and concessional interest rates. It will finance up to 70% of industrial project costs.
The government aims to use these incentives to attract local private investors, unlock additional capital, and expand the sector. The plan includes the development of 100,000 hectares of new oil palm plantations to increase raw material supply for processing plants.
“The oil palm is a long-term crop that requires patient, affordable, and predictable capital. Conventional short-term commercial loans do not suit a crop that reaches full maturity after nearly seven years. With this patient capital model, Ghana will attract domestic and foreign investors,” states the budget document.
Ghana’s Finance Ministry announced in April 2025 that it intended to mobilise US$100 million in private investment to develop 20,000 hectares of plantations. In July 2025, the government signed a public–private partnership with Onesta Ghana Ltd. to develop and operate 10,000 hectares under a first phase of a US$50 million project dedicated to crude and refined palm oil production.
Integration of smallholder farmers
The integrated development policy also prioritises smallholder inclusion as partners of large plantations and processing companies. The policy will provide improved seedlings, subsidised fertilisers, guaranteed off-take contracts, financing, and training in best production practices.
“The government, through the Tree Crops Development Authority (TCDA), the Oil Palm Research Institute (OPRI), and the Ghana EXIM Bank, will provide financing, research, and technical assistance to organised cooperatives. A Smallholder Support Fund will guarantee women and youth access to affordable credit and skills training,” the document states.
Authorities want to replicate models from Indonesia and Malaysia, which became the top two global producers by integrating large estates and smallholders. Ghana must close a 200,000-ton annual production deficit to achieve self-sufficiency. The country spends nearly US$200 million each year on imports to fill this gap.
Market constraints and the challenge of illegal imports
Beyond industrial expansion, authorities must address smuggling. In its latest report on Ghana’s oilseed market, the US Department of Agriculture noted that the influx of cheaper imported substitutes undermines local production and discourages plantation expansion.
The Oil Palm Development Association of Ghana (OPDAG) estimates that about 90% of cooking oils sold in the country are illegally imported, bypassing quality controls and tax obligations.
