Political Economy of the Oil Palm Value Chain in Ghana

Abstract

Oil palm (Elaeis guineensis) is of strategic importance to the Ghanaian economy. It is the second most important industrial crop after cocoa and is used widely in local food preparation as well as in industrial processing. In spite of its importance, however, oil palm has consistently underperformed since the early twentieth century. This paper conducts a value chain analysis of the crop, foregrounding the political economy factors that shape the performance of the sector. It draws on a combination of in-depth interviews conducted in March 2020 with a variety of value chain actors and a review of the secondary literature. Additionally, between late May and early June 2020, twelve further interviews were conducted as part of a rapid market survey to assess the impact of the COVID-19 pandemic on the value chain.