Accra: The Government is in the final stages of concluding a US$500 million financing agreement with the World Bank to bolster large-scale commercial oil palm development through private sector lending. This initiative aims to enhance the Integrated Oil Palm Development Programme, focusing on expanding commercial plantations and fortifying the country's oil palm value chain.
According to Ghana News Agency, Dr. Cassiel Ato Forson, the Minister of Finance, unveiled the specifics of this agreement during the presentation of the 2026 Mid-Year Budget Review to Parliament on Thursday. He projected that the agreement would be finalized and presented to Parliament by the end of 2026. The Government is determined to transform the oil palm industry into a significant contributor to industrialization, export growth, import substitution, and rural employment.
Dr. Forson highlighted that a crucial aspect of the Integrated Oil Palm Development Policy is the creation of sustainability-compliant oil palm land banks. These land banks aim to mitigate investment risks and accelerate the growth of large-scale plantations integrated with smallholder and out-grower schemes. "Implementation of this initiative is progressing steadily," he stated.
The Minister further elaborated on collaborative efforts by the Ministry of Lands and Natural Resources, the private sector, and other relevant institutions. They have reviewed over 270,000 hectares of land in the Western Region, completing drone surveys over 117,000 hectares, and selecting 46,000 hectares 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."
He also mentioned that the identified areas are undergoing rigorous environmental, social, and sustainability assessments, adhering to international standards. Similar land mapping and documentation activities have commenced in the Central Region, with preparatory work underway in the Eastern and Volta regions. The current assessment suggests 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 added. The initiative is poised to attract private sector investment, generate over 250,000 direct and indirect jobs across the value chain, bolster smallholder participation, boost domestic crude palm oil production, reduce import dependence, and establish Ghana as a regional hub for palm oil processing and exports.
To support farmers, the Government's Feed Ghana Programme has established 50 Farmers Service Centres nationwide, enhancing access to mechanization and extension services. The Minister reassured stakeholders of the programme's responsible and sustainable implementation to ensure enduring benefits for communities and the national economy.
In support of this initiative, the government has deposited GHC551 million into an escrow account at the Bank of Ghana to establish a Letter of Credit for procuring 1,840 units of agricultural machinery and equipment. Dr. Ato Forson noted that the equipment, including tractors, trailers, power tillers, ploughs, cultivators, seed drills, sprayers, fertilizer spreaders, and combine harvesters, would significantly enhance farm productivity, reduce production costs, and improve food security.