Ghana needs 150,000 more tonnes of palm oil annually to meet demand – OPDAG

Ghana’s annual crude palm oil production falls short of domestic demand by an estimated 150,000 metric tonnes, prompting calls for increased investment in farming and processing.

The President of the Oil Palm Development Association of Ghana (OPDAG), Paul Kwabena Amaning, said the country produces approximately 250,000 metric tonnes annually, compared with demand of about 400,000 metric tonnes.

Speaking at a one-day workshop for stakeholders in the oil palm sector, he described the deficit as an opportunity to increase domestic output, upgrade processing operations and make the industry more competitive.

The workshop examined financing and the role of digital financial services across the oil palm value chain.

Mr Amaning said Ghana has an estimated 360,000 hectares under oil palm cultivation, with the industry supporting approximately 631,000 people.

He noted that the proposed US$500 million financing for oil palm development could help tackle barriers to growth. However, he urged stakeholders to ensure that funding arrangements accommodate smallholder farmers, aggregators and artisanal processors.

“As OPDAG President, I consider the inclusion of these small operators particularly important,” he said.

He explained that artisanal processors make substantial contributions to palm oil production, rural employment and economic activity, but struggle to obtain affordable credit, modern machinery and formal business support.

Mr Amaning also called for greater use of digital financial services to facilitate payments and improve business operations among farmers, processors, traders, transporters and exporters.

“Digital financial services can help improve payment security, strengthen record-keeping, increase transparency, and create opportunities for businesses to access savings, credit, insurance and other financial products,” he said.

He stressed that successful digitalisation would require more than transferring payments to mobile platforms. Reliable connectivity, reasonable transaction fees, accessible payment agents and systems that work across different platforms would be essential.

Consumer protection and practical training, he added, would also help users build confidence in digital services.

Mr Amaning said digital transaction records could enable financial institutions to better assess small businesses and their funding needs, provided appropriate consent and safeguards were in place.

He further identified the sector’s developing traceability and revenue assurance system as a potential means of improving industry records and supporting access to finance.

He called for closer cooperation among government agencies, banks, financial technology companies, mobile network operators, mills, buyers and industry associations.

“Policies and financial solutions will be more effective when voices of farmers, processors, and other industry participants are heard and reflected in their design,” he said.

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