Home Business Africa: ‘Africa Lacks Production Capacity to Meet Local Demand for Oil Palm’

Africa: ‘Africa Lacks Production Capacity to Meet Local Demand for Oil Palm’

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The Secretary, National Action Committee on Africa Continental Free Trade Agreement (AfCFTA), Mr. Francis Anatogu has stated that Africa lacks the production capacity to meet local demand its oil palm needs, noting that the continent still depends heavily on importation.

According to him, Nigeria and other countries on the continent put together cannot produce the quantity of oil palm Africa needs as report reveals that importation of oil topped the list of import among countries in Africa.

Anatogu stated this on the sidelines of a seminar on AfCFTA organised by the Lagos Chamber of Commerce and Industry (LCCI) in Lagos recently.

He said, “There is still a lot of oil palm being imported into Africa, so we do not have the production capacity to meet what Africa needs, so we need to build the capacity and reduce the importation of oil palm. Africa cannot produce the quantity the Continent needs. All the countries in Africa put together cannot produce what Africa needs, but it is not just all about palm oil, but about the value chain.”

He urged exporters to take advantage of the huge opportunities that exist in the oil palm demand gap, saying that the higher the continent imports, the higher the opportunities for exporters to tap from the trade.

“Our market is huge and represents 11.8 per cent of total imports into Africa and we have to maintain our domestic market share and we have to develop the local capacity,” he added.

He noted that Nigeria has continued to witness increased investment moving into agriculture and agro based manufacturing, assuring that the federal government would continue to support local and foreign investment in its bid to get more investments into agriculture and manufacturing.