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Gov’t, World Bank to Launch $500m Oil Palm Financing Window to Create 250,000 Jobs
Finance Minister Dr Cassiel Ato Forson has unveiled one of the most ambitious agro-industrial programmes in Ghana’s recent history—a $500 million oil palm development financing window that aims to drive self-sufficiency, expand plantations, boost exports, and create at least 250,000 jobs across the value chain.
Presenting the 2026 Budget Statement and Economic Policy to Parliament, Dr Forson declared that the initiative marks “a new dawn for Ghana’s agro-industrial transformation”, signalling the government’s determination to unlock the country’s long-untapped potential in the global palm oil market.
According to the minister, the facility—to be established in collaboration with the World Bank, Development Finance Institutions (DFIs), and the Development Bank Ghana (DBG)—will provide long-term, low-interest financing, with a five-year grace period and support covering up to 70% of project costs.
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“Mr Speaker, oil palm plantation development requires patience and long-term capital, not short-term loans. This financing window will target only sustainable, job-creating ventures,” Dr Forson stressed.
Dr Forson emphasised that the policy puts smallholder farmers first, ensuring they are not sidelined by large-scale investors. Through a new Global Partnership Scheme, farmers will receive:
- Improved high-yield seedlings
- Modern mechanisation support
- Affordable credit
- Guaranteed off-take at fair prices
The Tree Crops Development Authority (TCDA), Oil Palm Research Institute (OPRI), and the Ghana Exim Bank will provide research, technical assistance, and financing, backed by a dedicated Smallholder Support Fund for women and youth.
TCDA will regulate production while OPRI develops improved varieties to push Ghana toward global competitiveness by 2032.
To accelerate plantation expansion, the government will secure large climate-suitable land banks through the Ministry of Lands and Natural Resources. These lands, Dr Forson assured, will have:
- Fair compensation for communities
- Secure tenure for investors
- Full environmental compliance
This approach, he said, will drive both sustainability and investor confidence.
The minister announced a tax stamp regime for edible oils to curb smuggling and protect local producers from unfair imports—a key barrier that has long stifled Ghana’s palm oil industry.
By combining sustainable financing, land accessibility, farmer support, and strict regulation, Dr Forson projected that Ghana will become self-sufficient, export-ready, and a regional leader in sustainable palm oil by 2032.
“This policy is more than agriculture. It is a blueprint for industrialisation, rural transformation, and shared prosperity,” he said. “Ghana has the land, we have the people, and now we have the vision.”
The minister further outlined a sweeping mechanisation initiative under newly established Farmer Service Centres, supplying:
- 660 tractors
- 3,000 trailers
- 200 mini tractors and attachments
- 330 harrows
- 460 ploughs
- 1,200 boom sprayers
- 50 combine harvesters
- And various precision seed drills and equipment
This, Dr Forson noted, is designed to reduce drudgery, improve productivity, and modernise agriculture at scale.
“Mr Speaker, our farmers have always carried Ghana on their shoulders. With this investment, we are returning the favour,” he declared.
In response to the nationwide food glut, President Mahama has directed the release of GH¢200 million to the National Food Buffer Stock Company to purchase and store excess produce and protect farmer incomes.
He has also ordered all schools—from basic to secondary—to procure only locally produced rice, maize, chicken, and eggs, ensuring consistent demand for farmers and poultry producers.
Dr Ato Forson concluded that agriculture — often dismissed as old-fashioned — is now the engine of Ghana’s renewal.
“The transformation has begun,” he affirmed. “Every palm planted will become a pillar of lasting prosperity.”
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