Government Establishes $500 Million Oil Palm Development Finance Window to Boost Agro-Industrial Growth
Minister for Finance, Dr Cassiel Ato Forson, has announced the establishment of a Dedicated US$500 million Oil Palm Development Finance Window to support Ghana’s National Policy on Integrated Oil Palm Development (2026–2032) and accelerate the country’s transition into an industrially vibrant and export-ready agricultural economy.
Presenting the 2026 Budget Statement themed “The Ghana We Want” to Parliament on Thursday, November 13, 2025, Dr Forson said oil palm, being a long-gestation crop that takes nearly seven years to reach full maturity, requires patient, affordable, and predictable capital, which conventional short-term commercial loans cannot provide.
The new financing facility, established in partnership with the World Bank, other development finance institutions (DFIs), and the Development Bank Ghana (DBG), will:
Provide long-tenor loans aligned with the crop’s growth cycle;
Offer a five-year moratorium on principal and interest payments;
Apply concessional interest rates to attract private investors; and
Finance up to 70 percent of project costs, with investors and cooperatives contributing the remainder.
Funding will be tied to sustainability and governance standards, ensuring investments protect the environment, create decent employment, and uphold labour rights. Through this patient capital model, Ghana aims to attract both domestic and foreign investors while ensuring benefits are equitably shared across rural communities.
Dr Forson highlighted the inclusion of smallholder farmers through a new Outgrower Partnership Scheme, linking them to nucleus estates and processing facilities. Smallholders will gain access to improved seedlings, mechanization services, subsidized fertilizer, and guaranteed off-take agreements at fair prices.
Government, through the Tree Crops Development Authority (TCDA), Oil Palm Research Institute (OPRI), and Ghana EXIM Bank, will provide financing, research, and technical assistance to organized cooperatives. A Smallholder Support Fund will ensure women and youth have access to affordable credit and skills training, mirroring successful models from Malaysia and Indonesia.
The National Oil Palm Policy will be anchored on robust implementation and strong regulatory oversight. TCDA will coordinate licensing, production planning, and data management; OPRI will focus on high-yield, climate-resilient varieties; and the Oil Palm Development Association of Ghana (OPDAG) will promote industry coordination and public-private dialogue.
To enhance compliance and revenue, government will introduce a tax stamp regime for refined edible oils, modelled after the beverage industry, to curb smuggling, ensure fair taxation, and protect domestic producers.
Dr Forson emphasised that these reforms aim to position Ghana for self-sufficiency in palm oil, create a downstream value-added sector, generate jobs, and establish the country as a regional leader in sustainable palm oil production by 2032.
“The National Policy on Integrated Oil Palm Development represents a bold commitment to re-industrialize agriculture, deepen rural transformation, and unlock Ghana’s Red Gold potential, turning it into a pillar of our industrial and export-led future,” Dr Forson concluded.
