Government nears US$500 million oil palm financing deal — Ato Forson

Government is finalising a US$500 million World Bank financing agreement to support large-scale commercial oil palm development through private sector lending.

The facility is intended to finance the Integrated Oil Palm Development Programme to expand commercial plantations and strengthen the country’s oil palm value chain.

Presenting the 2026 Mid-Year Budget Review to Parliament on Thursday, Dr Cassiel Ato Forson, the Minister of Finance, said the agreement was expected to be concluded and presented to Parliament by the end of 2026.

He said the Government remained committed to transforming the oil palm industry into a major driver of industrialisation, export growth, import substitution and rural employment.

Dr Forson said a key pillar of the Integrated Oil Palm Development Policy was the establishment of sustainability-compliant oil palm land banks to reduce investment risks and accelerate the development of large-scale plantations integrated with smallholder and out-grower schemes.

“Implementation of this initiative is progressing steadily,” he added.

The Minister said the Ministry of Lands and Natural Resources, in collaboration with the private sector and other relevant institutions, had reviewed more than 270,000 hectares of land in the Western Region.

He said drone surveys had been completed over 117,000 hectares, while 46,000 hectares had been selected for detailed Land Use Change Analysis.

“To date, assessment has been completed on 16,000 hectares, of which approximately 10,780 hectares have been identified as suitable for sustainable oil palm development.”

Dr Forson said the identified areas were undergoing environmental, social and sustainability assessments, including High Conservation Value, High Carbon Stock and Free, Prior and Informed Consent (FPIC) processes in accordance with international standards.

He said similar land mapping and documentation activities had begun in the Central Region, with preparatory work underway in the Eastern and Volta regions.

The Minister said the current assessment indicated that the Western Region alone could provide about 300,000 hectares for the first phase of development.

“As work expands nationwide, the land bank has the potential to exceed 100,000 hectares across Ghana's oil palm growing belt.”

Dr Forson said the initiative was expected to unlock private sector investment, create more than 250,000 direct and indirect jobs across the value chain, strengthen smallholder participation, increase domestic crude palm oil production, reduce import dependence and position Ghana as a regional hub for palm oil processing and exports.

He said, under the Government’s Feed Ghana Programme, 50 Farmers Service Centres had been established nationwide to improve farmers’ access to mechanisation and extension services.

The Minister assured stakeholders that the programme would be implemented responsibly and sustainably to deliver lasting benefits to communities and the national economy.

“To support this initiative, government has deposited GHC551 million into the escrow account at the Bank of Ghana, to establish a Letter of Credit for the procurement of 1,840 units of agricultural machinery and equipment,” he said.

Dr Ato Forson said the equipment included tractors, trailers, power tillers, ploughs, cultivators, seed drills, sprayers, fertiliser spreaders and combine harvesters.

He said the equipment would significantly improve farm productivity, reduce production costs and enhance food security.

GNA