ACCRA – The Finance Minister, Dr. Cassiel Ato Forson, has been urged to provide clarity on the Government’s Oil Palm Development Finance Facility.
Development Economist, Dr. Frank Bannor, is asking the Minister to explain whether the US$500 million Oil Palm Development Finance Facility and the US$523 million Agricultural Enclave Roads Programme are the same instruments as the GH¢6.9 billion Oil Palm window and GH¢828 million enclave roads line captured in the Budget.
He has also requested that the Minister report the cedi disbursement against the original budget lines either way.
What The Finance Minister Announced
Presenting the Mid-Year Budget Statement in Parliament on Wednesday, July 23, Dr. Forson said government remains committed to transforming Ghana’s oil palm industry into a driver of industrialisation, export growth, import substitution and rural employment.
Key updates from the Minister:
– Land Bank: Over 270,000 hectares in the Western Region have been reviewed. Drone surveys completed on 117,000 hectares. 46,000 hectares selected for Land Use Change Analysis. 16,000 hectares assessed, with 10,780 hectares identified as suitable for sustainable oil palm development.
– Sustainability: The areas are undergoing environmental, social, and sustainability assessments, including High Conservation Value, High Carbon Stock, and FPIC processes. Similar work has started in Central, with preparatory work in Eastern and Volta Regions.
– Scale: Western Region alone is expected to provide 30,000 hectares for phase one. The national land bank could exceed 100,000 hectares.
– Impact: Government projects over 250,000 direct and indirect jobs, increased CPO production, reduced import dependence, and positioning Ghana as a regional palm oil hub.
– Financing: Government is finalising a US$500 million Integrated Oil Palm Development financing agreement with the World Bank* for on-lending to the private sector. It is expected to be presented to Parliament by the end of 2026.
*Economist’s Concern*
Dr. Bannor says clarity is needed on whether the new dollar facilities are replacements for, successors to, or additional to the cedi budget lines already in the 2024/2025 budget.
“Report the cedi disbursement against the original Budget lines either way,” he stated.
_By Kofi Nartey | Daily Newsflash_
#OilPalm #GhanaEconomy #FinanceMinister #Budget2025 #Agriculture #WorldBank #Industrialization #DailyNewsflash
The core issue here: are we looking at new money, or the same money repackaged in dollars? That affects transparency and debt tracking.
