Management of Development Bank Ghana (DBG) has engaged key actors and stakeholders in the oil palm value chain across the country, following government’s declared intention of providing up to US$500million in financing opportunities to revitalise the sector.
During the 2026 budget reading in November last year, Finance minister Dr. Cassiel Ato Forson announced that government will deploy a US$500million long-term financing facility for the palm oil sector from 2026 to 2032.
The investment is expected to overhaul the oil palm sector, aiming to close a 200,000-tonne annual production deficit and create over 500,000 jobs.
At an Oil Palm roundtable discussion with stakeholders on April 1 in Accra, CEO-DBG Prof. Randolph Nsor-Ambala said the intention of government brings several opportunities to private sector players in the value chain.
He explained that the financing initiative is aimed to transform the sector into a coordinated and efficient ecosystem, reduce reliance on imports and achieve supply chain sustainability.
According to Prof. Nsor-Ambala, government’s commitment to the sector aims at catalysing private sector investment – noting that over US$1billion will be required to fully develop the industry.
He said the dialogue was intended to develop a clear blueprint for cross-sector collaboration, positioning the oil palm sector as a key driver in Ghana’s economic transformation.
A research scientist at the Council for Scientific and Industrial Research – Oil Palm Research Institute (CSIR‑OPRI), Dr. Frederick Sarpong, highlighted that Ghana’s artisanal oil palm sector contributes about 44 percent of national supply despite facing numerous challenges.
He said low productivity and poor technology, seasonality and lack of finance, health, safety and environmental issues and weak market systems are some of the challenges confronting local production.
He explained that these challenges create a vicious cycle of low investment, low productivity, low income and continued poverty.
Despite this, Dr. Sarpong noted strong opportunities including high local demand, job creation potential and the sector’s ability to reduce rural poverty are key viable prospects for the sector.
Dr. Sarpong noted that with the right financing, technology and policy support, the decision to inject US$500million could significantly increase productivity, reduce imports and drive rural economic growth in Ghana’s oil palm sector.
President-Palm Development Association Paul Amaning described the oil palm sector as a strategic economic driver, supporting over one million livelihoods and offering strong potential for job creation, industrial growth and import substitution.
He however expressed concern over the growing gap between local production and consumption, noting that Ghana loses millions annually to imports, alongside jobs and economic value.
Mr. Amaning welcomed the proposed US$500million government financing scheme, but called for clear implementation strategies that will benefit the sector in the long-term.
