The Minister of Finance, Dr. Cassiel Ato Forson, has declared that the government is establishing a dedicated Oil Palm Development Finance Window with a budget of US$500 million to foster the long-term growth and sustainability of Ghana’s oil palm sector.
He made this announcement on Thursday, November 13, during his presentation of the 2026 Budget Statement and Economic Policy to Parliament.
Dr. Forson elaborated that oil palm is a crop with a long maturation period, necessitating patient and affordable capital, as it takes nearly seven years to achieve full maturity.
Nevertheless, he pointed out that traditional short-term commercial loans are not suitable for financing such initiatives due to their repayment schedules and elevated interest rates.
To tackle this issue, the government is collaborating with the World Bank, various development finance institutions (DFIs), and the Development Bank of Ghana (DBG) to implement the new facility.
The US$500 million finance window will offer long-term loans that align with the growth cycle of the crop, provide a five-year moratorium on both principal and interest payments, and apply concessional interest rates to encourage private sector investment.
Additionally, the facility will finance up to 70 percent of project expenses, with investors and cooperatives anticipated to contribute the remaining 30 percent.
Dr. Forson stressed that the funding will be linked to stringent sustainability and governance standards, ensuring that investments safeguard the environment, generate decent employment opportunities, and uphold labor rights.
