Chapter 11. Oil palm industry growth in Africa: a value chain and smallholders’ study for Ghana 379
BOPOP was started by MoFA in 2007 as a five-year project. The objective of the project was to develop
3 000 ha of new plantation, based on an outgrower scheme for 500 growers. The project covers two
areas, Buabin and Jukwa, in the Central Region of Ghana, with TOPP as the technical operator. The
planting of oil palm in the Buabin and Jukwa project areas started in 2007 and 2010, respectively. So
far, BOPOP has developed 3 297 ha and the farmers developed 547 ha. The Council for Scientific and
Industrial Research (CSIR) and OPRI provide consulting services for the implementation of the applied
research component of BOPOP. The GoG is contributing euros 2.12 million while international financiers
AFD and KfW (German development bank) are together contributing euros 13.41 million to the fund.
A total of euros 4.12 million is allocated to the oil palm plantation project. Other components of the
project include loans to farmers and construction of project sites. A tripartite agreement has been signed
between the farmers, the banks and the technical operator.
5.2 National plans for development of the oil palm industry:
Evaluation of public and private investments
Supporting the key role of the smallholders requires concerted government and private business
coordination. The current national plan for development of the oil palm industry is premised on the
private sector-led initiative facilitated by the government through outgrower schemes. The main strategy
is to link outgrower schemes through technical operators such as TOPP and BOPOP.
A new large scale development plan for Ghana’s oil palm industry, the Oil Palm Master Plan, is being
prepared to raise the nation’s competitiveness in oil palm production. It is expected to boost the
industry’s competitiveness in the global commodities market and also enable it to meet the rising local
demand for consumption and manufacturing.
The Plan focuses on access to finance, certification, land-use policy, technology transfer, and
infrastructure development from the farm to the port, as well as pricing mechanisms and marketing.
The policy document seeks to outline a set of projects and programmes to be executed within the
next 15 years and it will become the blueprint for the sector’s growth. This Plan aims at maximizing
development outcomes for communities while supporting smaller businesses as well as alleviating
poverty. There is a need to assess the role of the smallholder farmer in the Master Plan.
With respect to the trade regime governing palm oil imports, Ghana is among the countries that have
fully implemented the free-trade area component of the Economic Community of West Africa States
(ECOWAS) Trade Liberalization Scheme, which started in 1997. Like other ECOWAS countries, Ghana
does not impose any tariffs on eligible imports originating in other ECOWAS countries. Imports from
other ECOWAS members are duty-free.
The ECOWAS Common External Tariff (CET) is one of the instruments for harmonizing member states
and strengthening the common market. The ECOWAS-CET draws on the basic West African Economic
and Monetary Union (UEMOA) CET; it is composed of four tariff bands, or rates of customs duty with
the rest of the world: zero, 5 percent, 10 percent, and 20 percent. At a summit meeting, the heads
of state adopted a Supplementary Act to create a fifth band of the ECOWAS CET at 35 percent, for
“specific goods for economic development” as well as adopting common eligibility criteria for this band
among all the ECOWAS member states. The eligibility criteria include product vulnerability, economic
diversification, integration, sector promotion and high potential of production.