Stakeholders in Ghana’s agriculture sector have called for increased investment, policy reforms, and coordinated financing to unlock the full potential of the country’s palm oil industry.
Dr Frederick Sarpong, a Research Scientist at the Council for Scientific and Industrial Research (CSIR), said the sector required urgent intervention to drive sustainable growth and improve livelihoods.
He made the call at a Development Bank Ghana (DBG) Oil Palm Financing Roundtable held in Accra, on the theme: “Transforming Ghana’s Palm Oil Landscape: Financing for Sustainable Growth across the Value Chain.”
Dr Sarpong noted that the artisanal oil palm sector was largely dominated by women, who accounted for more than 80 percent of the workforce and contributed about 44 percent of national supply, despite facing significant operational constraints.
He identified key challenges, including low productivity due to outdated processing technologies, seasonal production patterns, limited access to finance, and poor health and environmental conditions.
According to him, oil extraction rates among artisanal processors ranged between six and nine per cent, far below the industrial benchmark of 18 to 25 percent, resulting in low-quality output and reduced incomes.
He further cited weak market systems, lack of reliable data, and the absence of traceability mechanisms as barriers limiting access to finance and export opportunities.
“These constraints create a cycle of low investment, low productivity, and low income, which continues to affect rural livelihoods,” he said.
Despite the challenges, Dr Sarpong highlighted opportunities within the sector, including strong domestic demand, job creation potential, and its capacity to reduce poverty in rural communities.
He proposed the adoption of modern processing technologies, improved quality standards, and innovative financing models such as lease-to-own arrangements and special purpose vehicles to enhance productivity.
Dr Sarpong also called for stronger government support, including measures to curb smuggling and increased investment in smallholder farmers and supply chains.
Prof. Randolph Nsor-Ambala, Chief Executive Officer of Development Bank Ghana, said the roundtable followed government’s announcement of a 500-million-dollar fund aimed at revitalising the oil palm value chain.
He explained that the initiative sought to transform the sector into a more coordinated and efficient ecosystem, reduce reliance on imports, and ensure supply chain sustainability.
Prof. Nsor-Ambala noted that while the fund would help catalyse private sector participation, the industry would require more than one billion dollars in total investment to reach its full potential.
He stressed the importance of collaboration among stakeholders to develop a clear roadmap for cross-sector partnerships to support Ghana’s economic transformation.
“There is no single solution, and this platform allows stakeholders to propose practical and sustainable interventions,” he said.
Mr Paul Amaning, President of the Oil Palm Development Association of Ghana, described the sector as a key economic driver supporting over one million livelihoods.
He expressed concern over the growing gap between local production and consumption, noting that Ghana spends more than 400 million dollars annually on palm oil imports.
Mr Amaning outlined major challenges, including low productivity, ageing plantations, limited access to long-term financing, weak coordination, land tenure constraints, and smuggling.
He said although the proposed 500-million-dollar fund presented a significant opportunity, its success would depend on clear implementation strategies, defined allocation mechanisms, and adherence to timelines.
Mr Amaning called for greater support for organised farmer groups, expansion of processing capacity, and increased value addition at the community level, particularly for women and youth.
He proposed a phased implementation plan, with structures established within six months, expansion within 12 to 18 months, and measurable outcomes within three to five years.
According to him, effective coordination could generate more than 250,000 jobs, strengthen rural economies, and significantly reduce the country’s dependence on imports.
The roundtable formed part of ongoing efforts to mobilise financing and partnerships to drive growth and sustainability in Ghana’s oil palm sector.
