Agro Perspectiva

World Bank And IFC Develop Palm Oil Strategy

07.06.2010 10:23 "Agro Perspectiva" (Kyiv) — The World Bank and its private sector arm, International Finance Corporation (IFC) are to develop an oil palm strategy, which is expected to transform the commodity into a real foreign exchange earner for the nation and the continent. Though palm oil production in Africa represents only three percent of global supply, the product is the most popular food on the African continent. The strategy would outline a set of principles to guide the World Bank Group’s future engagement in the palm oil sector with the key goal of maximizing development outcome for the communities and minimizing adverse social and environmental impacts of the sector. At a two-day consultative stakeholders’ meeting that ended in Accra on Tuesday, participants from Cameroon, Cote d’lvoire, Gabon, Ghana, Liberia, Nigeria and Sierra Leone discussed the potential of the palm oil industry in Sub Saharan Africa and its economic, social and environmental implications. Productivity was described as key to the industry’s future. The discussion focused on the need to support smallholder producers through access to finance, environmental certification, land policy and technology transfer. Participants agreed that there was considerable scope for expansion, but noted that the industry should be carefully managed to avoid potential threats to tropical forests and biodiversity loss. «IFC and the World Bank are working with a diverse group of stakeholders to inform our new global strategy that will guide our future engagement in the palm oil sector,» said Mary-Jean Ndlovo, IFC Ghana Country Manager. «Sub Sharan Africa has a long history of palm oil production. This consultative process is helping us to identify key issues affecting the palm oil sector and define ways by which the World Bank Group can support economic development while protecting the environment.» Briefing the press on Tuesday, Dr. Ohene Owusu Nyanin, World Bank Country Manager for Liberia said the bank has decided to adopt an oil palm strategy that would be implemented in a sustainable manner to promote job creation and reduce poverty on the continent. The discussion, according to him, centered on land use, governance, policy, among others, with the initial strategy expected to be delivered in September this year. «Oil palm has lifted people out of poverty in East Asia, especially Malaysia and our interest is to ensure the same thing is replicated here in Ghana.» Mark Constantine, Principal Strategy Officer, IFC, on his part, said the strategy was aimed at supporting smaller businesses to undertake their activities in an environmentally friendly manner. About 60 people attended the meeting, with representatives from civil society organizations, private companies, financial institutions, industry associations, smallholder producers, government and research institutions. Consumption of oil palm in Africa is expected to increase as the continent’s population grows.