• 90% of market dominated by unregulated, untaxed palm oil

• Plan includes $100M push for industrial oil palm plantations

Ghana’s Tree Crops Development Authority (TCDA) plans to set up an inter-agency task force to curb the influx of smuggled cooking oil into the local market.

The move follows a joint meeting held on Oct. 17 in Accra with the Oil Palm Development Association of Ghana (OPDAG). In a statement on Oct. 20, OPDAG said the task force will include the TCDA, Police, Immigration Service, Food and Drugs Authority (FDA), and Customs.

The announcement follows a measure introduced on July 14 requiring all palm oil importers to register and obtain permits as part of broader efforts to stabilize the domestic market. The regulator argues that unregulated imports undermine local farmers and processors.

According to OPDAG, about 90% of cooking oils sold in Ghana are illegally imported, avoiding quality control checks and tax obligations. “We have almost 1.2 million people working in the industry, paying corporate and value-added taxes, yet traders import cheap oil through unapproved routes without paying any tax. That makes their products cheaper and unfairly competitive,” OPDAG President Paul Amaning told local outlet Ghanaweb. 

The task force marks a new step in the government’s efforts to regulate the sector. By tightening control over imports and enforcing compliance, authorities aim to restore the competitiveness of local processors and attract investors to develop the oil palm industry.

Under its new industrial policy for the sector, the government plans to develop 50,000 hectares of industrial oil palm plantations to supply processing units. The first phase targets $100 million in private investment to develop 20,000 hectares. In 2024, Ghana imported about $224.6 million worth of fats and oils, with nearly 61% of that total coming from palm oil, according to TradeMap data.

Stéphanas Assocle