The government is targeting a reduction in palm oil imports worth US$2 billion, according to a 2025 report from the Ministry of Food and Agriculture.

The report indicates that Ghana consumes about 250,000 metric tonnes of palm oil annually, far exceeding the local production capacity of just 50,000 metric tonnes.

This substantial shortfall is met through imports, contributing to a food import bill estimated at US$2 billion each year.

To address this imbalance, the government has announced plans to introduce a National Palm Oil Industry Policy aimed at boosting local production and revitalising the entire value chain.

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As part of the strategy, 1.5 million oil palm seedlings will be distributed to farmers, who will also receive incentives to encourage cultivation. These farmers will be enrolled in out-grower plantation schemes designed to expand production capacity and improve livelihoods.

The broader goal is to strengthen Ghana’s palm oil sector, reduce the import burden, and create employment opportunities for the growing number of unemployed youth in rural areas.

It would be recalled that the Oil Palm Development Association of Ghana reported more than a 50 percent decline in palm oil exports in 2024, attributing the drop to limited government support and inadequate processing infrastructure.

SA/MA

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