Ghana’s MoFA Launches ‘Red Gold’ Initiative to Boost Palm Oil Production Under GTCDP

Ghana’s MoFA Launches ‘Red Gold’ Initiative to Boost Palm Oil Production Under GTCDP

The Ministry of Food and Agriculture (MoFA) has introduced measures under the Ghana Tree Crops Diversification Project (GTCDP) to address the significant gap between palm oil production and consumption in Ghana.

With domestic demand reaching approximately 250,000 metric tonnes annually, far exceeding the current production of 50,000 metric tonnes, MoFA warns that this imbalance is driving up the country’s food import bill, which exceeds US$3 billion. The ministry emphasized the need for urgent action to strengthen the palm oil industry through increased investment, improved farming techniques, and enhanced support for smallholder farmers to close the supply gap.

Under the 2025-2028 Medium-Term Expenditure Framework (MTEF), the government plans to roll out a national palm oil industry policy to incentivize growth across the value chain. Dubbed the ‘Red Gold’ initiative, the program will distribute 1.5 million oil palm seedlings to farmers and promote participation in out-grower plantation schemes.

Additionally, the Tree Crops Development Authority introduced regulations in July 2025 to curb substandard palm oil imports, which undermine local processors and consumer safety. These measures aim to bolster local production while reducing reliance on imports, which cost Ghana US$1.17 billion between 2019 and 2021, according to the Oil Palm Development Association of Ghana (OPDAG).

OPDAG highlighted that small-scale producers and artisanal millers, who often lack modern technology and best practices, are a key bottleneck in the industry. While a standard palm farm should yield 18-25 tonnes of fresh fruit per hectare annually, small-scale farmers in Ghana achieve less than six tonnes, with oil extraction rates lagging at 11-13% compared to the ideal 20-25%. The association advocates for intensified efforts to adopt best practices and increase production by at least 50%.

MoFA’s initiatives, coupled with stricter import regulations, aim to transform Ghana’s palm oil sector, following the example of Ivory Coast, the continent’s only net exporter of palm oil, as Nigeria’s production declined after its focus shifted to petroleum.

Source: Peace FM Online