Palm Oil Deficit Worsens in West Africa Despite Sustained Investment

Palm oil production in West Africa is facing significant challenges despite being one of the continent's most lucrative commodities.

The region imports around 6.2 million tonnes of palm oil annually, a deficit that is met by Southeast Asian countries due to its high demand and limited refining capacity.

Nigeria and Côte d'Ivoire are the largest producers in West Africa, accounting for over 70% of regional output. However, productivity remains a major concern as yields in the region are significantly lower than those achieved by commercial plantations in Southeast Asia.

A large share of fresh fruit bunches is transported long distances to reach functional mills, causing delays and reducing oil extraction rates. This, combined with cheaper refined imports from Southeast Asia, continues to suppress domestic price levels and hinder investment in local farming and processing upgrades.