Sanaa:The Oil Palm Development Association of Ghana (OPDAG) is urging stronger collaboration among various stakeholders, including government agencies, financial institutions, fintech companies, mobile network operators, mills, buyers, and industry associations, to transform the nation's oil palm industry.
According to Ghana Web, OPDAG President Paul Kwabena Amaning emphasized the need for closer cooperation to tackle the financing, production, and digital challenges impacting the oil palm value chain. He highlighted that Ghana's current production of about 250,000 metric tonnes of crude palm oil annually falls short of the estimated domestic demand of 400,000 metric tonnes, resulting in a supply gap of 150,000 metric tonnes.
Amaning stressed the importance of increasing local production, enhancing processing efficiency, and making the industry more competitive. With approximately 360,000 hectares under cultivation, the sector supports around 631,000 people. He welcomed a proposed $500 million financing initiative but noted that it should be tailored to meet the needs of smallholder farmers, aggregators, and artisanal processors, who significantly contribute to production but face challenges in accessing affordable financing and modern equipment.
Digital financial services were identified as crucial for sector transformation, with Amaning stating that secure transactions and timely payments are essential for all stakeholders, including farmers, processors, and exporters. He argued that digital services could enhance payment security, record-keeping, transparency, and access to financial products like savings, credit, and insurance.
Amaning also highlighted the need for reliable network connectivity, affordable transaction charges, accessible payment agents, interoperable systems, consumer protection, and practical education as part of the digitalisation efforts. He pointed out that discussions on a traceability and revenue assurance system could further support access to financial services by improving industry records.
Finally, Amaning called for policies and financial solutions that incorporate the voices of farmers, processors, and other industry participants to ensure their effectiveness and relevance.