DBG to develop tailored financing tools to drive Ghana’s oil palm industry

The Development Bank of Ghana (DBG) plans to create customized financing tools to stimulate Ghana's oil palm industry. Chief Executive Officer Professor Randolph Nsor-Ambala stated that the bank would develop tailored financial instruments to cater to the diverse needs of various actors in the oil palm value chain. To achieve this, the bank is collaborating with 21 financial institutions, including universal and rural banks, to mobilize capital for the oil palm sector.

Nsor-Ambala emphasized that the current financial ecosystem lacked the capacity to assess projects within the oil palm value chain properly. During a recent media briefing, held during the national oil palm multi-stakeholder roundtable in Accra, Nsor-Ambala underscored the bank's departure from the belief that a one-size-fits-all financial instrument would satisfy all stakeholders.

He explained that the bank was working to ensure that financial intermediaries possess the necessary capacities and insights to assess the projects and carry the associated risks on their balance sheets. The event, themed "From policy to practice: The role of TCDA in resetting Ghana’s oil palm industry," brought together stakeholders from the oil palm sector to discuss growth strategies and job creation opportunities.

Prof. Nsor-Ambala highlighted that the DBG recognized the varied challenges faced by stakeholders in the oil palm value chain, necessitating the development of multiple financial products and solutions. He emphasized the bank's role in catalyzing private sector participation to achieve the desired economic transformation brought about by the oil palm industry.

The DBG is currently designing various financial instruments to address the specific needs of actors in the oil palm sector. The $500 million allocated in the 2026 budget for the oil palm sector is expected to support preparatory works for finalizing the financing agreement with the World Bank, scheduled for presentation to Parliament.

However, Prof. Nsor-Ambala stressed that the bank's focus would be on multiple sets of solutions, given that the April 1 stakeholder meeting made clear that a one-size-fits-all solution was inadequate for the oil palm sector's actors.