Over 1.2 million jobs in Ghana’s palm oil industry are at risk from the persistent smuggling of substandard and untaxed vegetable oils, according to the Oil Palm Development Association of Ghana (OPDAG). The association warned that unchecked illegal imports could push local producers to the brink of collapse.
Paul Kwabena Amaning, President of OPDAG, said at a press conference in Accra on Tuesday that the influx of unregulated and untaxed products undermined the competitiveness of local producers, eroded government revenue, and endangered livelihoods. He cautioned that failure to address the problem could lead to the collapse of many small and medium scale processing companies that employ thousands of Ghanaians across the value chain.
Amaning described the situation as a national crisis that demands urgent action from government, regulators, and law enforcement agencies. “This is not just an industry problem, this is a national threat,” he said.
Data presented by OPDAG at a stakeholder meeting revealed that about 90 percent of cooking oil on the local market was smuggled and uncertified. The association warned that the trend threatened the survival of Ghana’s oil palm industry, which employed more than 850,000 people, including 36,000 women, and contributed over 500 million cedis in annual taxes.
Smuggled oils avoid customs duties and food safety checks, allowing them to sell far below production costs of legitimate local manufacturers. According to OPDAG estimates, the local industry loses tens of millions of cedis annually due to tax evasion and unfair competition from these products, many of which fail to meet Ghana’s food safety standards.
Amaning warned that several small and medium scale processing companies were already struggling to stay afloat as they faced rising costs of raw materials, currency fluctuations, and limited market access worsened by the surge in illegal imports. He also raised concerns about the potential health risks posed by unregulated oils that bypass quality checks by the Food and Drugs Authority and Ghana Standards Authority.
Ghana currently produces around 300,000 metric tonnes of crude palm oil annually, while the national demand exceeds 400,000 metric tonnes, leaving an annual shortfall of about 100,000 metric tonnes. Despite this production gap, smuggled oils are flooding the market and displacing domestically produced oils.
Last week, the Tree Crops Development Authority (TCDA) announced the formation of a joint monitoring and enforcement taskforce in collaboration with key state institutions including the Police, Immigration, Ghana Armed Forces, Ghana Standards Authority, Food and Drugs Authority, and National Security to combat the influx of smuggled cooking oil.
Amaning commended the TCDA for convening a stakeholder meeting on the issue, describing the recommendations by its Chief Executive Officer, Dr. Andrew Osei Okrah, as timely and practical. He said OPDAG fully supported the TCDA’s plan to establish the taskforce to address the growing menace through coordinated enforcement, market surveillance, and border monitoring.
He endorsed several proposed enforcement measures, including the implementation of a traceability system to monitor products from refinery to retail, mandatory registration of transporters and traders to improve accountability, and enhanced collaboration among the Ghana Revenue Authority, Food and Drugs Authority, Ghana Standards Authority, and National Security for a unified crackdown on smuggling networks.
Amaning further urged government to impose stiffer penalties on individuals and groups engaged in the smuggling trade to deter future offenders. He also appealed to the media to play a proactive role by raising public awareness and exposing illegal trade practices that undermine local industries and compromise consumer health.
He emphasised that the palm oil sector could be a pillar of Ghana’s industrial growth and rural employment strategy if properly regulated and protected from unfair external competition. Amaning said importers of vegetable oil should be required to use designated ports such as Takoradi rather than land borders to help curb illegal trade.
Amaning reaffirmed OPDAG’s commitment to work closely with the TCDA, government institutions, and industry partners to safeguard the sector, promote fair trade, and protect millions of livelihoods tied to palm oil production and processing. He said with coordinated enforcement, transparency, and stakeholder collaboration, Ghana’s palm oil industry could achieve full self sufficiency and even become a net exporter in West Africa.
