The Finance Minister, Dr Cassiel Ato Forson, has been urged to provide clarity on the Government Oil Palm Development Finance Facility.
A Development Economist, Dr Frank Bannor, is asking the Finance Minister to explain whether the US$500m Oil Palm Development Finance Facility and the US$523m Agricultural Enclave Roads Programme are the same instruments as the Budget’s GH¢6.9 billion Oil Palm window and GH¢828 million enclave roads line.
He requested the Finance Minister to report the cedi disbursement against the original budget lines either way.
While presenting the Mid-year budget statement in Parliament on Wednesday, July 23, the Minister of Finance, Dr Cassiel Ato Forson, said that the government remains committed to transforming Ghana’s oil palm industry into a major driver of industrialisation, export growth, import substitution and rural employment.
He said that a key pillar of the Integrated Oil Palm Development Policy is the establishment of sustainability-compliant oil palm land banks to de-risk private sector investment and accelerate the development of large-scale plantations integrated with smallholder and outgrower schemes. Implementation of this initiative is progressing steadily, he said.
He said the Ministry of Lands and Natural Resources, working in collaboration with the private sector and other relevant institutions, has reviewed over 270,000 hectares of land in the Western Region for this purpose.
Drone surveys have been completed on over 117,000 hectares, while 46,000 hectares have been selected for detailed Land Use Change Analysis, he added.
To date, he said, an assessment has been completed on 16,000 hectares, of which approximately 10,780 hectares have been identified as suitable for sustainable oil palm development.
“These areas are now undergoing the required 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. Similar mapping and land documentation activities have commenced in the Central Region, with preparatory work underway in the Eastern and Volta Regions.
Based on current assessments, the Western Region alone is expected to provide approximately 30,000 hectares of land for the first phase of development,” he said.
As work expands nationwide, he added, the land bank has the potential to exceed 100,000 hectares across Ghana’s oil palm growing belt.
This initiative will unlock significant private sector investment, create over 250,000 direct and indirect jobs across the value chain, strengthen smallholder participation, increase domestic crude palm oil production, reduce import dependence and position Ghana as a leading regional hub for palm oil processing and exports, he said.
“Government will continue to work with all stakeholders to ensure that this programme is implemented responsibly, sustainably and in a manner that delivers lasting benefits to our communities and the national economy.
Government is also finalising a US$500 million Integrated Oil Palm Development financing agreement with the World Bank for on-lending to the private sector for the development of large-scale commercial oil palm plantations.
We expect to conclude and present it to the House by the end of 2026,” the Minister said.
In his assessment of the mid-year budget, Dr Bannor, also a Development Economist said “Clarify whether the US$500m Oil Palm Development Finance Facility and the US$523m Agricultural Enclave Roads Programme are the same instruments as the Budget’s GH¢6.9bn Oil Palm window (1134) and GH¢828m enclave roads line (1135), successors to them, or additional to them, and report the cedi disbursement against the original Budget lines either way.”
Story by Kofi Nartey
