IFC Signs $12.5m Agreement With Ghana

International Finance Corporation (IFC), a member of the World Bank Group, has signed a $12.5-million loan agreement with the government to provide financing to Ghana Oil Palm Development Company.

The investment will provide Ghana Oil Palm Development Company with long-term funding to complete its planting program, improve infrastructure, and expand its working capital.

The loan will also provide the company with the flexibility to invest in oil palm, trees that typically start fruiting in their fourth year of growth.

The IFC Country Manager for Ghana, Imoni Akpofure, in a statement issued in Accra said: “Developing the agribusiness sector in Ghana is a priority for IFC because of its significant potential to create jobs and generate income in rural areas.”

Oscar Chemerinski, IFC Senior Manager, noted: “This investment in Ghana Oil Palm Development Company demonstrates our confidence in the local economy and the future of the sector.”

IFC is an organization that fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing capital in the international financial markets, and providing advisory services to businesses and governments.

Ghana Oil Palm Development Company was set up in 1975 by the government of Ghana, with support from the World Bank, to promote local production of palm oil.

The project included a strong out-grower programme to boost rural income. It was privatized in 1995 and is currently a joint venture between the government and SIAT Ghana Limited.

The company supplies crude palm oil and palm kernel oil to the domestic market. It will soon supply refined products as well, with the completion of its refinery and fractionation plant.

The $12.5 million loan represents the largest IFC investment in the country's agribusiness sector to date, the statement said.