The government has announced plans to finalise a US$500 million Integrated Oil Palm Development financing agreement with the World Bank to support the expansion of large-scale commercial oil palm plantations in Ghana.
Finance Minister Dr Cassiel Ato Forson disclosed this while presenting the 2026 Mid-Year Fiscal Policy Review in Parliament on Thursday, July 23.
He said the facility will be made available to the private sector through on-lending arrangements to finance the development of sustainable oil palm plantations across the country.
Dr Forson said the initiative forms part of government’s broader strategy to transform Ghana’s oil palm industry into a major driver of industrialisation, export growth, import substitution and rural employment.
According to him, government is establishing sustainability-compliant oil palm land banks to reduce investment risks and accelerate the development of large-scale plantations linked with smallholder and outgrower schemes.
The Finance Minister said the Ministry of Lands and Natural Resources, in collaboration with the private sector and other relevant institutions, has reviewed more than 270,000 hectares of land in the Western Region for potential oil palm development.
He added that drone surveys have been completed on over 117,000 hectares, while 46,000 hectares have been selected for detailed Land Use Change Analysis.
Dr Forson said assessments have so far been completed on 16,000 hectares, out of which about 10,780 hectares have been identified as suitable for sustainable oil palm cultivation.
He noted that the identified areas are undergoing environmental, social and sustainability assessments, including High Conservation Value, High Carbon Stock and Free, Prior and Informed Consent (FPIC) processes in line with international standards.
The Finance Minister said similar mapping and land documentation exercises have begun in the Central Region, with preparatory work underway in the Eastern and Volta Regions.
He explained that the Western Region alone is expected to provide about 30,000 hectares of land for the first phase of development, while the national oil palm land bank could exceed 100,000 hectares as the programme expands.
Dr Forson said the initiative is expected to attract significant private sector investment, create more than 250,000 direct and indirect jobs across the value chain, increase domestic crude palm oil production and reduce Ghana’s dependence on imports.
He added that the programme will also strengthen smallholder participation and position Ghana as a leading regional hub for palm oil processing and exports.
The Finance Minister said government expects to conclude and present the US$500 million financing agreement to Parliament by the end of 2026.
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