Driving sustainable palm oil production in Africa
The Roundtable on Sustainable Palm Oil says demand for sustainable palm oil is at the cusp of growth on the continent though Africa’s contribution to global palm oil production remains under 5 percent. The head of Africa at the Roundtable on Sustainable Palm Oil, Elikplim Agbitor says financial institutions are driving sustainability in the industry leveraging certifications as due diligence mechanisms for finance provision.
Fri, 12 Apr 2024 14:30:27 GMT
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AI Generated Summary
- Smallholder farmers account for 70% of the land under cultivation for palm oil production in Africa.
- The region faces challenges such as limited production capacity, reliance on artisanal mills, and a growing demand for palm oil that exceeds domestic production.
- The use of RSPO certification as a due diligence mechanism for finance provision is gaining traction, with financial institutions driving producers to adhere to sustainability standards.
The Roundtable on Sustainable Palm Oil says demand for sustainable palm oil is on the rise in Africa, as financial institutions drive sustainability in the industry through certifications. Elikplim Agbitor, the head of Africa at the Roundtable on Sustainable Palm Oil, highlighted that Africa's contribution to global palm oil production remains under 5 percent, with smallholder farmers holding 70 percent of the land under cultivation for palm oil production. The region faces challenges such as limited production capacity, reliance on artisanal mills, and a growing demand for palm oil that exceeds domestic production. Despite these challenges, the focus on sustainability and certification is gaining traction in the industry. The use of RSPO certification as a due diligence mechanism for finance provision is becoming a common practice among financial institutions, driving producers to adhere to sustainability standards. Additionally, countries like Nigeria are taking steps to increase palm oil production to reduce the reliance on imports. The expansion of palm oil production in Africa is seen as a long-term strategy to meet domestic demand and potentially increase exports. As the industry looks towards a sustainable future, the role of certification and financial support will play a crucial role in driving the growth of palm oil production in Africa.
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