A regulatory initiative designed to strengthen Ghana’s palm oil sector is generating frustration among industry operators who warn that bureaucratic delays are handing competitive advantages to traders in neighboring countries.
Philip Nana Kwame Brobey, Chief Executive Officer of Phil Fry Oil, argues that while the Tree Crops Development Authority’s (TCDA) effort to formalize palm oil imports and exports is well-intentioned, cumbersome approval processes are undermining the very competitiveness the regulations aim to enhance.
“The system is simply too bureaucratic,” Brobey explained in an interview. “The time it takes for approvals and registration means our goods are delayed while importers from Côte d’Ivoire, Togo, and even Nigeria are cashing out faster. We support regulation, but it must be efficient. Every delay translates into a loss for Ghanaian businesses.”
Starting July 14, 2025, TCDA required all palm oil importers to register and obtain official permits to operate, with the regulation covering imports of Crude Palm Oil, Crude Palm Olein, and Refined Palm Olein. The directive, announced by CEO Dr. Andy Osei Okrah, enforces compliance with Legislative Instrument requirements as part of broader efforts to formalize the tree crops value chain, enhance revenue mobilization, and promote Ghana’s competitiveness in regional trade.
However, operators like Brobey describe what they call “bureaucratic bottlenecks” that risk undermining those objectives. The registration process reportedly involves multiple layers of documentation, verification, and follow-ups that can extend for weeks, delaying business operations and increasing costs.
“Many of us operate within tight timelines,” Brobey said. “When containers get stuck because paperwork isn’t completed, it’s not just a delay; it’s a chain reaction that affects transporters, retailers, and even consumers. Meanwhile, traders across the border move their products with minimal restrictions and take advantage of regional market gaps that we should be filling.”
The timing is particularly significant given the African Continental Free Trade Area (AfCFTA) context. Industry experts suggest Ghana stands to benefit considerably from structured palm oil trade systems—but only if regulatory processes align with market realities rather than creating friction.
TCDA, established by the Tree Crops Development Authority Act, 2019 (Act 1010), is mandated to regulate and develop the tree crop industry, including oil palm, rubber, cashew, mango, coconut, and shea, working to improve production, processing, and marketing. The registration requirement represents part of that broader regulatory mandate.
Brobey urged the Authority to streamline the registration system and introduce digital platforms enabling real-time verification and faster application processing. He also called for closer engagement between TCDA and industry stakeholders to ensure compliance measures don’t inadvertently stifle trade.
“We’re not against the registration; in fact, we welcome it,” Brobey emphasized. “But the process must be business-friendly. Ghanaian companies shouldn’t be losing opportunities simply because of red tape.”
Palm oil represents a significant component of Ghana’s agro-industrial base, employing thousands of smallholder farmers and contributing substantially to rural livelihoods. The sector also figures prominently in the country’s non-traditional export strategy, making operational efficiency particularly important.
Brobey warned that continued inefficiencies could push local processors and importers to divert trade activities to countries where border and regulatory procedures prove more straightforward. “If we make it too difficult to operate here, capital and trade will move elsewhere,” he cautioned.
The challenge highlights a common tension in regulatory reform: balancing the need for oversight and standardization against the imperative of maintaining business competitiveness. Too little regulation risks quality issues and revenue leakage; too much regulation—or poorly implemented regulation—can achieve the opposite of its intended effect by disadvantaging domestic operators relative to foreign competitors.
Brobey appealed to the Ministry of Food and Agriculture and TCDA to examine pragmatically how bureaucratic delays affect Ghanaian business competitiveness, arguing that an efficient system benefits not just individual companies but the broader national economy.
“The goal should be to empower local businesses, not frustrate them,” he concluded. “When Ghanaian firms thrive, we create jobs, pay taxes, and strengthen our local value chain. But if the system keeps dragging, others in the sub-region will continue to cash out while we lag behind.”
The broader question is whether Ghana can achieve its regulatory objectives—formalizing the sector, ensuring quality standards, and capturing appropriate revenue—without creating competitive disadvantages that ultimately work against national economic interests. Getting that balance right matters considerably, particularly as regional trade integration accelerates under AfCFTA.