INVESTMENT OPPORTUNITY: OIL PALM

• The oil palm tree (Elaeis guineensis Jacq), an indigenous crop cultivated in West Africa, is a

leading tropical vegetable oil worldwide. 
• Palm oil provides one of the leading vegetable oils produced globally, accounting for one-
quarter of global consumption and approximately 60% of international trade in vegetable
oils. An estimated 74% of global palm oil usage is for food products and 24% is for
industrial purposes. The capacity of oil palm production in total has been jumped by 128%
growing strongly as 58 m tons per year over the last decade due to be increased in global
population and oil consumption. Around 85% of the production is concentrated in
Indonesia and Malaysia, but its use is rapidly spreading in whole world as China and India
are the main importing countries, next to the EU. 
• Moreover, an increasing number of plantations have been stablished together with the
expansion of the existing ones. The projected per capita consumption and population
growth reveal that by next few decades the consumption of edible vegetable oil will
skyrocket (from 120 to 240 M t yr-1 by 2050) Therefore, it was doubled from 2.9 million
hectares to 6.3 million hectares, respectively, followed by significant smallholder
participation and creation of an estimated 1.7 to 3 million jobs. 
• For developing countries that are notable as the producer, palm Oil is celebrated as the
new potential development to enter into the export market, job opportunities, rural
livelihood development and national income generation 

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 INVESTMENT OPPORTUNITY: OIL PALM
HOW WE HAVE SCOPED THE OPPORTUNITES & STRATEGIC
IMPERATIVES
HEADLINE ITEMS TARGETS

Opportunities for • Export Market 

Enterprises within the • Income Generation 
Ecosystem • Job Opportunities 
• Rural Livelihood development 
• Raw materials for oil palm value chain. 
Strategic Imperatives • Deliberate attempt to promote plantation of palm trees for sustainable development of the
for the Government state and create job for the populace this palm tree value chain while improving internally
generated revenue of the state. 
• This will make Anambra state major zone in the east when it comes to palm tree plantation
and its value chain and improve socio-economic life of the people. 
Proposition • Make land available to potential partner. 
• Provide enabling environment for palm tree plantation and its value chain. 
• Use high-yield, disease-resistant seed varieties. 
• Encouraging backward/forward integration especially among large oil palm agro-processors
and distributors such ROM Oil will help promote mechanized palm tree
plantation and increase yield output beyond the current lackluster level. 
• Support agricultural research and development (R&D). 
• Support players and introduce them to cheap funding from Commercial Banks,
CBN intervention fund and Development bank. 

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 INVESTMENT OPPORTUNITY: Maize Farming

HOW WE HAVE SCOPED THE OPPORTUNITES & STRATEGIC

IMPERATIVES
HEADLINE TARGETS
ITEMS
Timelines 3 to 4 years after plantation. 

Financing Financing:   Public Private Partnership 

AFDB 
BOA 
CBN Intervention Schemes 
Commercial Banks. 

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 Sungai Ruku Oil Palm Plantation Case Study 
Case Profile Description
Project • Sungai Ruku Oil Palm Plantation
Location • MALAYSIA
Strategic • Strategic Imperatives/Objectives: 
Imperatives • Job creation. 
• Create enabling environment for palm tree plantation 
• Create access to low-cost funding. 
• Provide right seedling to farmers. 
• Right Partnership with private sector to promote. 
Financing • Government Intervention scheme. 
• Deliberate attempt to Provide land for palm tree plantation. 
• Public private partnership 
• Developments partners  
• Commercial Banks. 
Challenges • Primitive orientation about farming. 
• Climate Change. 
• Inability to migrate from subsistence farming to commercial farming. 
• Lack/insufficient supply of farm inputs and fertilizers. 
Achievements • The Malaysian oil palm industry has significant impact on the national economy, especially on the agriculture sector, and
it is the 4th largest contributor to the national economy. Around 60 % of international trade in vegetable oils whereas
estimated 74 % of global palm oil usage is for food products and 24 % is for industrial purposes. 
• Higher production, value addition and sustainability strategies are identified as vital to the oil palm industry. 
• Malaysian palm oil production accounts for 11% of the world's oils & fats production and 27% of export trade of oils and
fats"

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