The Chief Executive Officer of the Development Bank Ghana (DBG), Professor Randolph Nsor-Ambala, has called for bold, coordinated and practical action to transform Ghana’s oil palm sector, following government’s announcement of a US$500 million fund to revitalise the value chain.
Opening a high-level stakeholder roundtable, the DBG CEO said the funding initiative was intended to reposition the oil palm industry as a coordinated, efficient and sustainable ecosystem, capable of reducing Ghana’s heavy dependence on imports while stimulating inclusive economic growth.
He explained that the government’s intervention was designed to catalyse private sector participation, stressing that while the US$500 million fund is a critical starting point, the full development of the sector will require investments in excess of $1 billion.
“The commitment is not about a one-size-fits-all solution,” he said, emphasising the importance of open, honest engagement among stakeholders to identify interventions that are both practical and sustainable.
The CEO noted that the roundtable dialogue was aimed at producing a clear blueprint for cross-sector collaboration, positioning oil palm as a central pillar of Ghana’s economic transformation agenda.
Against this backdrop, Dr Frederick Sarpong, Research Scientist at the Oil Palm Research Institute of the Council for Scientific and Industrial Research (CSIR-OPRI), provided a deep-dive analysis of the artisanal segment of the sector, which he described as both critical and undervalued.
Dr Sarpong revealed that Ghana’s artisanal oil palm industry is dominated by women, who make up more than 80 per cent of operators, and contributes approximately 44 per cent of national palm oil supply.
Despite this significant contribution, he noted that the sector continues to face severe constraints that undermine productivity, incomes and livelihoods.
He grouped the challenges into four broad areas. First is low productivity driven by outdated technology, with artisanal processors achieving oil extraction rates as low as 6–9 per cent, compared to 18–25 per cent in industrial mills.
This inefficiency results in lower volumes and inconsistent, often poor-quality oil.
Secondly, Dr Sarpong cited seasonality and limited access to finance. Many processors lack the funds required to purchase fresh fruit bunches during off-peak periods, leading to production disruptions and a decline in quality. This perpetuates a cycle of low output and low income.
The third area relates to health, safety and environmental risks, particularly in artisanal processing centres that are often unsafe and unhygienic. These conditions expose workers—mostly women and sometimes children—to significant physical and environmental hazards, including smoke, polluted water and poor waste management practices.
Finally, he pointed to weak market systems and informality, characterised by limited data, poor quality control and a lack of traceability. These constraints restrict access to finance, reduce competitiveness and shut small-scale producers out of formal and export markets.
According to Dr Sarpong, these interconnected challenges reinforce a vicious cycle of low investment, low productivity, low income and persistent rural poverty.
Nevertheless, he stressed that the sector holds strong opportunities, supported by robust local demand, significant job creation potential and the capacity to drive rural development if properly structured and financed.
To unlock this potential, he proposed a package of financial and structural reforms, including the introduction of modern processing technologies, the establishment of targeted financing mechanisms such as lease-to-own models and special purpose vehicles, improved quality standards and traceability systems, and stronger government support through better policies and anti-smuggling measures.
He also underscored the need for sustained investment in smallholder farmers and more efficient supply chains.
Adding a private-sector perspective, Mr Paul Amaning, President Oil Palm Association, described oil palm as a strategic economic driver, supporting more than one million livelihoods nationwide and offering significant potential for job creation, industrialisation and import substitution.
He warned, however, that the widening gap between domestic production and consumption is costing Ghana over US$400 million annually in palm oil imports, alongside lost jobs and economic value.
While acknowledging that challenges such as low productivity, ageing plantations, limited financing, land tenure issues, weak coordination and smuggling are well known, Mr Ameni stressed that the time for diagnosis had passed.
Welcoming the proposed US$500 million fund, he called for clear implementation frameworks, including defined allocation structures, responsible implementing institutions and specific timelines.
He also advocated targeted support for organised farmer groups, expanded processing capacity and community-level value addition, with a strong focus on women and youth.
Mr Amaning proposed a phased approach to impact, with foundational structures established within six months, expansion within 12 to 18 months, and measurable outcomes within three to five years.
He said with decisive leadership, strong coordination and genuine stakeholder collaboration, Ghana can reshape its oil palm sector, create over 250,000 jobs, strengthen rural economies and significantly reduce dependence on imports.
By: Christian Akorlie / businesspostonline
