Finance Minister Dr. Cassiel Ato Forson has announced the establishment of a US$500 million Oil Palm Development Finance Window to support the cultivation of oil palm, a long-gestation crop that requires patient and predictable financing.
Dr. Forson unveiled the initiative during the presentation of the 2026 Budget Statement in Parliament.
He explained that conventional short-term commercial loans are ill-suited for a crop that takes nearly seven years to reach full maturity.
The new fund, being developed in partnership with the World Bank, other development finance institutions (DFIs), and the Development Bank Ghana (DBG), aims to provide long-tenor loans that align with the growth cycle of oil palm.
“Mr. Speaker, oil palm is a long-gestation crop that demands patient, affordable, and predictable capital. Conventional short-term commercial loans are ill-suited for a crop that takes nearly seven years to reach full maturity. To address this, Government is establishing a dedicated US$500 million Oil Palm Development Finance Window in partnership with the World Bank, other DFIs, and the Development Bank Ghana,” he stated.
The facility will offer a five-year moratorium on principal and interest payments and apply concessional interest rates to attract private investors. It is designed to finance up to 70 percent of project costs, with the remainder contributed by investors and cooperatives.
Dr. Forson stressed that funding will be tied to strict sustainability and governance standards, ensuring that capital flows only into projects that protect the environment, create decent employment opportunities, and uphold labour rights.
The initiative forms part of the government’s broader agenda to support agricultural transformation, encourage private investment in long-term crops, and strengthen Ghana’s agro-industrial value chains.