Klo Oil Palm Outgrowers Association (KOPOA) and Asare Odometa Plantations Limited (AOPL)

 Introduction

The project involves Oil Palm by KOPOA with AOPL as the Technical Operator through the Upper Manya Kro Rural Bank Limited (UMKRBL) in the Eastern Region. The clients are located within Asesewa in the Eastern Region.

 Purpose

  • To establish and maintain 300ha of oil palm plantations for ninety eight (98) Outgrowers;
  • To expand the existing oil palm processing facilities of the Technical Operator from 0.5mt/hr to 1.0mt/hr; and install a fully mechanised mill to replace the existing Gratis Foundation mill;
  • Grant request for the strengthening of a nascent Outgrower Unit to ensure higher productivity of its members, negotiating skills on pricing of produce with TO, etc.

 Tenor/Loan Repayment

The UMKRBL/OVCF Term Loan shall be repaid by instalments adapted to the production cycle of the value chain, over a period of seven (7) years including one (1) year moratorium and 13 years with four (4) years moratorium on principal repayment and interest payments for AOPL and KOPOA, respectively.

 Pricing

The interest on the Loan from the Bank to both clients shall be charged at the rate of 15.5% per annum. This rate would be reviewed annually at the beginning of the year, based on the prevailing economic conditions including the Policy Rate of Bank of Ghana.

 Justification

  • AOPL has the technical competence and adequate raw materials to assist the outgrowers to develop the oil palm plantations.
  • AOPL shall buy all palm fruits produced by the outgrowers, giving assurance of an already existing market for the produce.
  • The project has a high potential for job creation and poverty reduction in the area.

Photos.

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Inspection of some of the Oil Palm Processing facilities.

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Nursery for seedlings production for the outgrowers.

 
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