By Franklin Ocheneyi
A survey on palm oil consumptions in Africa has revealed that Nigerians are consuming less palm oil as par capita consumption of the commodity is put at 8.0kg, compared to Cote D’Ivoire 11.7kg Kenya 13.3 kg; Cameroon 14.6kg, Egypt 15.3kg and Ghana 26.8kg.
In Nigeria, the key investors in the palm oil industry are Presco Oil Palm, Okomu Oil Palm, PZ Wilmar, among others.
Business Monitor International (BMI) Research, a Fitch Group Company, which conducted the study, said that within Africa and the Middle East, East and West African countries will be the outperformers in terms of palm oil consumption.
“Palm oil already dominates the vegetable oil market, due to its availability – West African countries produce a significant volume of palm oil – and especially its affordability,” said the report.
According to the report, in West Africa, palm oil is already a staple, used widely to cook traditional dishes. As a result, consumption per capita is quite elevated by international standards relative to their GDP per capita levels.
Looking forward, palm oil consumption in West Africa will continue to expand, driven by robust demographic trends – population in the African countries for which we forecast palm oil consumption will expand by about 2% annually over the next 15 years, with the stark exception of South Africa – and rising income levels, in particular in Cote d’Ivoire and Ghana. Palm oil consumption via processed food use will slowly emerge in the coming years, but is starting from a relatively low base in West Africa. We forecast Cameroon, Ghana and Cote d’Ivoire’s palm oil consumption to grow by around 5-7% annually over the 2017-2021 periods.