Palm oil accounts for 34 per cent of the world’s annual production of vegetable oil and 63 percent of the global exports of vegetable oils. Palm oil has long-term benefits for the economy: creating more jobs and rural development. African countries’ experience of palm oil development provides a clear example of how palm oil, as a result of its high yields and low production costs is a highly effective means of alleviating poverty.

The expansion of oil palm plantations means establishing a steady supply for food demand tomorrow. According to the World Bank, demand for palm oil is expected to double by 2020. This growth is driven largely by rising consumption in China and India. Evidently, the cultivation of palm oil is not being driven by a single industrial sector but the global rise in demand for palm oil as a whole. Whether for food or energy needs, African producers are trying to benefit from this rise in demand to raise themselves out of poverty, increasing government revenue as a result.

Despite challenges, African producers are attracting investments at unprecedented rates. This has earned endorsements from international aid agencies such as the World Bank and the International Fund for Agriculture Development. In the same way, developed economies government should create a system that support palm production as a way to build a self sustaining African economies rather than the present regime of aid which often end in the pocket of few. Already, companies from South East Asia, the Americas and even Europe are looking to the continent to invest in the emerging agriculture sector - to the benefit of African producers and global food security.

For investors looking to participate in African growth, increasing Africa’s Oil palm plantation is the one to consider. Over a decade ago, few investors were giving African economies a sideways glance. But in the last few years, many countries in West Africa have attracted investment about $6bn specifically for palm oil plantation.

The increased demand for palm oil, together with its high yielding and easily manageable nature makes this particular product an attractive crop for farmers and investors alike. The industry in Africa is dominated for decades by smallholder farmers. The expansion in palm oil plantation is basically to address shortfall in local production coupled with the need to take advantage of the steadily rising demand from consumers across the emerging economies and from the bio-fuel sector globally. This is possible given the support from several African governments in Nigeria, Liberia, Ghana, Uganda, Ivory Coast and several other countries which see the crop as a cornerstone for economic development.

However if African nations are to continue to benefit from increased investment in oil palm plantation and the tremendous rewards of economic development and social empowerment accompanied oil palm development, international trade channels must remain open. Locally, African governments need to make land available and urgently resolved land-ownership disputes with existing investors which could delay operations and consequently dim further expansion drive.

Long-term employment in the sector requires access to markets. Palm oil production cannot occur in absence of demand, both global and domestic. European biofuels demand is one part of many required to support the sector. Nevertheless, investing in the expansion of oil palm plantation today means establishing the supply for food demand tomorrow. This can only be accomplished by expanding palm oil cultivation in Africa, one of the last regions with sufficient land available for cultivation.