The Untapped Palm Oil Potential of Central Africa

Central Africa, often overshadowed in Africa’s palm oil narrative by West Africa’s famous belts, holds massive potential for the red gold. With abundant land, favorable climate, growing domestic demand, and underexploited capacity, the region is poised for transformation. But realizing that potential will require overcoming structural challenges. This article examines what Central Africa currently offers, what’s holding it back, and where opportunity lies.

What is Central Africa, and Why Does It Matter?

“Central Africa” in the context of palm oil usually refers to countries like Cameroon, Democratic Republic of the Congo (DRC), Republic of Congo, Gabon, Central African Republic, Equatorial Guinea, etc. These cover huge tracts of tropical rainforest, have vast undeveloped agricultural land, and climates that are naturally suited for oil palm (rainfall, temperature, soil).

Globally, the biggest palm oil producers are in Southeast Asia (Indonesia, Malaysia)—but Africa is growing. According to a report by the Malaysian Palm Oil Council (MPOC), production in Sub-Saharan Africa has grown from ~2.4 million tonnes in 2014 to over 3.5 million tonnes in 2024 (≈ 50% growth). Central African countries are part of that growth trend. mpoc.org.my

However, Africa still contributes less than 5% of global production. That represents both how far behind many producers are and how much room for growth remains. mpoc.org.my

Central Africa’s Current Palm Oil Landscape: Case of Cameroon

Cameroon is the best current example in Central Africa of what is possible—and what is being missed.

Production & Deficit

• Cameroon’s palm oil production was about 320,000 tons in 2021, according to FAO/FAOSTAT. Helgi Library
• Forecasts expected that to grow to 400,000 tons in 2022, then ~ 425,000-450,000 tons by 2023-2024. The Bank of Central African States predicted that trend upward. Business in Cameroon+1
• Yet demand is much higher. The country faces a structural deficit in crude palm oil; for example, the Association of Oilseed Refiners of Cameroon (ASROC) estimates a shortfall of ~ 160,000 tons annually. Sometimes, experts suggest the real deficit is higher when factories are operating below full capacity. Business in Cameroon+2cemac-eco.finance+2

Imports & Trade

• To fill gaps, Cameroon has increased imports dramatically. From ~ 96,000 tons in 2017 to 225,000 tons by 2024 of crude palm oil, reflecting inability of local production to keep pace with processing capacity and consumption. cemac-eco.finance
• Between 2017 and 2023, Cameroon imported ~ 409,000 tons of palm oil from other African countries, spending about CFA 280.4 billion. Business in Cameroon+1

Processing & Efficiency

• There is large variation in extraction efficiency. Industrial plantations in Cameroon reportedly yield ~ 21% extraction rate (oil from fresh nuts) in industrial mills, while village/local smallholder/artisanal mills have far lower extraction (≈ 14%). theafricandreams.com
• Part of the deficit arises from processing units working only at partial capacity, low yield, poor infrastructure, and inability to source sufficient feedstock (fresh fruit bunches).

Why Central Africa’s Potential Is “Untapped”

From Cameroon’s example and other data, several factors show Central Africa has key advantages that are simply not fully leveraged yet.

• Abundant Land & Climatic Suitability
• • Much of Central Africa remains rainforest or primary forest, but there exist degraded, fallow lands, agroforestry zones, and plantations waiting to be expanded or replaced with improved oil palm estates.
  • Climate (rainfall, humidity, soil) in many zones is nearly ideal for oil palm. These natural conditions reduce risk compared to starting new plantations in marginal climates.

• Growing Domestic Demand

• • As population grows, urbanization expands, and incomes rise in Central African countries, domestic demand for edible oils, cooking fats, soaps, etc., is increasing.
  • In Cameroon specifically, domestic demand is reported to exceed 1 million tons yearly, while production remains at 400-500 thousand tons. That gap signals a strong local market if supply can ramp. UkrAgroConsult+2cemac-eco.finance+2

• Industrial Processing Capacity Exists But Underserved

• • Cameroon has multiple processing/refining units, soap factories, and industrial demand; those factories need raw palm oil. But they can’t get enough from domestic sources unless production increases.
  • Some recent expansion in capacity, but still constrained by raw materials availability. cemac-eco.finance+2Business in Cameroon+2

1. Import-Substitution Opportunity

   • Given the large volumes being imported (from other African countries and outside), there is a strong economic case for substituting imports with domestic production (if done efficiently). This could retain value, reduce foreign exchange outflows, and stabilize prices.

2. Potential for Value-Addition & Export

   • Not just raw or crude palm oil, but refining, packaging, branding, sustainability certification could open export opportunities.

   • If Central Africa can satisfy quality and regulatory requirements, there is opportunity in intra-African trade, plus exports to markets where certification (RSPO etc.) and traceability are valued.

Real-Life Examples & Emerging Projects

While much remains to be done, there are promising moves or projects in Central Africa that illustrate what is possible.

• Industrial vs Smallholder in Cameroon: The industrial plantations (~70,000 hectares) produce roughly 180,000 tons of palm oil, while local/village smallholder plantations (~100,000 hectares) produce ~90,000 tons. theafricandreams.com
  This demonstrates that industrial scale has much higher productivity. It also shows the scale of land already under use, and how output is strongly correlated with scale, investment, and technology.

• Capacity Expansion Forecasts: In Cameroon, forecasts by BEAC (Bank of Central African States) estimate production reaching 450,000 tons by 2024, up from ~ 320,000-400,000 tons. While the growth is linear and modest, it shows upward momentum. Business in Cameroon+1

• Import vs Export Trends: Even with deficits, Cameroon has managed to increase exports in small amounts: in 2023, exporting ~ 1,687.5 tons of palm oil (up from ~ 657 tons in 2022). Though tiny relative to domestic demand, the increase shows there is export potential if production is increased. Business in Cameroon

• Regulatory & Industrial Push: ASROC in Cameroon has repeatedly advocated for import control, quality standards, and better support for local producers to reduce the dependence on imports. The government has allowed reduced-tariff imports as a temporary measure, but the long-term objective is to boost local production and close the deficit. Food Business Africa+2cemac-eco.finance+2

What Is Holding Central Africa Back: Key Challenges

Understanding the potential means also seeing the obstacles clearly. Many of these are structural, some historical, some policy-related.

• Low Productivity & Yield Losses
  • Many smallholder and artisanal mills have low extraction rates (as mentioned, 14% in Cameroon’s village mills vs ~21% in industrial). That yields a lot of loss and waste. theafricandreams.com
  • Old palms, poor planting materials, minimal input support (fertiliser, extension, disease control) degrade yield.

• Infrastructure & Logistics

  • Poor roads, unreliable power, weak transport from farm to mill reduce efficiency. When fresh fruit bunches deteriorate en route or during delays, quality and quantity suffer.
  • Processing units or mills are often under capacity due to lack of raw materials or logistical delays.

• Regulatory & Policy Issues
  • Import controls vs subsidy policies are inconsistently enforced. Sometimes imported palm oil (or refined oils) cheat on standards. Non-compliant products undercut local producers. cemac-eco.finance
  • Tariff and non-tariff barriers (or trade policy ambiguity) can discourage investment. Also land tenure and access issues—especially for smallholders and community lands—often complicate plantation expansion.

• Financing & Investment Gaps

  • Industrial plantations require large capital (planting, establishing mills, processing infrastructure). Smallholders often lack access to affordable credit.

  • Investors are wary of regulatory risk, environmental concerns, and weak traceability systems.

• Environmental & Social Concerns

  • Deforestation, biodiversity loss, displacement or land rights issues can lead to backlash or restrictions (both local and from importing countries).

  • Sustainability certification is costly and often difficult for smallholders to achieve.

What Would It Take to Unlock the Potential?

Given what’s in place and what’s missing, here are concrete steps and policy levers that Central Africa (and Cameroon as a prime example) could deploy.

• Improve Yields & Extraction Efficiency

  • Support smallholders with improved seedlings, disease-resistant palms, fertiliser, training.
  • Upgrade local mills; reduce waste in extraction. Introduce better milling technologies.
• Scale Up Industrial Plantations Responsibly
  • Provide incentives (tax breaks, land, subsidies) for large scale, well-managed plantations with traceability.
  • Use agroforestry or degraded land rather than clearing primary forest.

• Strengthen Infrastructure & Logistics
  • Invest in roads, storage, processing facilities / mills near production zones.
  • Improve supply chains: reduce time between harvest and milling, reduce spoilage.

• Regulatory Reforms & Policy Stability

  • Clarity in land rights, environmental laws, processing permits.
  • Implement and enforce import standards to prevent unfair competition.
  • Use policy tools like import substitution, tariffs, or incentives to encourage local sourcing of raw palm oil.

• Finance & Public-Private Partnerships
  • Mobilize both domestic and international capital. Access climate finance, green funds, impact investment.
  • Encourage PPPs for refineries, processing clusters, extension services.

• Certification, Traceability & Sustainability

  • Promote RSPO or similar certification, especially for industrial producers.
  • Help smallholders organize cooperatives that can achieve compliance together.
  • Use mapping, satellite, mobile data to track supply, monitor deforestation, ensure legality.

• Market Development & Export Strategy

  • Focus first on reducing export of deficits (import substitution), then exporting surpluses.
  • Build branding (“Central African palm oil”, sustainably produced) for premium markets.
  • Leverage African trade agreements (like AfCFTA) to facilitate cross-border trade of palm oil in quantity and reduce trade friction.

Projections and Scenarios: What Could Central Africa Look Like in 5-10 Years

Here are possible scenarios, given different levels of ambition and action.

Risks to Watch

• Global palm oil price volatility (biofuel mandates, supply shocks in Asia).
• Regulatory backlash (e.g., strict EU deforestation-free requirements) that penalize producers unless compliance is strong.
• Land conflict, local community pushback, environmental damage if plantation expansion is unmanaged.
• Currency risks, trade barriers, inflation of input costs.

A Call to Action

For Central Africa, the message is: the pieces are there, but coordination, investment, and strategy are needed. Stakeholders—from smallholders to government ministries—must align to make this potential real.

• Governments must adopt policies that support productivity, protect environment and communities, and encourage industrial investment.

• Private sector must bring in capital, efficiency, innovation.

• Smallholders need to be integrated into value chains, supported with training, inputs, and fair terms.

• Civil society and partners must ensure sustainability and transparency to avoid the mistakes seen elsewhere.

Conclusion

Central Africa has soil, climate, land, and growing demand. It has an urgent need, substantial opportunity, and a high upside. But today, it’s under-exploited: large deficits in countries like Cameroon, inefficient extraction, fragmented farming, and heavy import dependence show how far things are from perfect.

If the region acts—with vision, investment, and care—Central Africa could become a major palm oil hub, producing not only for local markets but for export with value addition. The fruits of this potential would be economic growth, rural transformation, job creation, and stronger food security.

The untapped palm oil potential of Central Africa is not speculation—it is an opportunity waiting for leadership and execution.