Ghana Launches “RedGold” Policy to Cut $2 Billion Palm Oil Imports, Boost Local Production

Ghana is taking a major step to reduce its $2 billion annual palm oil import bill with the introduction of a new agricultural initiative, the “RedGold” oil palm programme. The policy aims to scale up domestic palm oil production and promote diversification into high-value tree crops, aligning with the government’s import substitution and agro-industrial transformation agenda.

Outlined in the 2025–2028 Medium-Term Expenditure Framework, the National Palm Oil Industry Policy will support farmers with 1.5 million oil palm seedlings. It also promotes large-scale out-grower plantation schemes and provides incentives to expand local processing capacity, setting the stage for significant private sector investment in Ghana’s agro-industry.

Currently, Ghana produces only 50,000 metric tons of palm oil annually, far below the domestic consumption of over 250,000 metric tons. This shortfall has created a structural gap in the edible oils market. The RedGold programme aims to develop a fully integrated palm oil value chain—from farm production to refinery—addressing this imbalance and creating thousands of jobs in rural communities.

The palm oil strategy is part of the broader Ghana Tree Crops Diversification Project (GTCDP), which encourages commercial cultivation of cashew, coconut, rubber, mango, and shea alongside oil palm. This initiative is designed to increase farmer incomes, generate foreign exchange, and strengthen Ghana’s position in the agro-industrial sector.

In 2025, the government, through the Ghana Tree Crops Development Programme (GTRDP), plans to distribute over five million seedlings nationwide, including 2 million cashew, 1.65 million rubber, and 1.42 million coconut. An additional two million seedlings, covering shea and mango, will target 500,000 farmers, underscoring the country’s commitment to agricultural diversification and self-sufficiency.

Source: Citi newsroom