By Majella Mark

The global demand for natural oils is experiencing a surge due to their versatility in food, cosmetics, and pharmaceuticals. Today, Indonesia and Malaysia dominate the global palm oil market, producing around 85% of the world’s supply. This presents a unique economic opportunity for regions such as Africa and the Caribbean, particularly with red palm and coconut oil. Both areas are historically rich in the natural resources necessary for oil production. At the same time, African countries struggle to compete due to a lack of investment, outdated infrastructure, and economic barriers.

Africa holds immense potential in the red palm oil industry. Countries such as Nigeria, Ghana, and Liberia are rich in oil palm resources but remain underutilized. Despite being the birthplace of palm oil, Africa only accounts for about 3% of the global palm oil trade. In contrast, Indonesia and Malaysia dominate the market with 59% and 25% of global production. The market for palm oil is projected to reach $92.84 billion by 2026, growing at a CAGR of 5.3%. The global coconut market is expected to reach over $38 billion by 2030, growing at a CAGR of 8.4%. Coconut oil is expected to reach $7.4 billion by 2027.

Coconut oil is being used more in cosmetics, wellness products, and as a complement to cannabis. The Caribbean’s unique positioning and favorable climate provide a competitive edge that, if leveraged correctly, could increase export revenues and job creation in rural communities. It’s up to African countries to increase their production and competitiveness on a global scale. Investment in these industries can revitalize economies within the African Diaspora and reposition these regions as key players in the global oil market. This could create jobs, reduce poverty, and improve food security across the continent.

 Investing in red palm and coconut oil production in Africa and the Caribbean offers significant economic benefits for the regions and the broader global economy. With the right investments, modernization, and strategic market development, these regions can reclaim their historical prominence in these industries. The African Diaspora, with its financial resources, technical expertise, and global connections, is ideally positioned to lead this initiative, helping to create a thriving, sustainable, and profitable oil industry for future generations.

‘Oil‘ Renée Fortune