After years of mounting debt and weakened farmer confidence, the government has rolled out far-reaching reforms aimed at restoring stability and trust in Ghana’s cocoa sector. The new measures follow a detailed review that revealed nearly eight years of financial mismanagement at the Ghana Cocoa Board (COCOBOD), threatening the livelihoods of hundreds of thousands of cocoa farmers and the country’s most important export industry.
Finance Minister Dr. Cassiel Ato Forson announced the reforms, describing them as a necessary reset to protect farmers, rebuild COCOBOD’s finances, and secure the long-term future of cocoa production in Ghana. Cocoa, which supports about 800,000 farm families and contributes significantly to foreign exchange earnings, has faced declining confidence due to delayed payments, rising debt, and an unsustainable financing structure.
Immediate Relief for Farmers
At the heart of the reform package is urgent support for cocoa farmers who are owed payments. Government has directed COCOBOD to clear all outstanding arrears to affected farmers without delay, easing financial pressure on households that depend on cocoa income for basic needs such as food, healthcare, and education.
To prevent similar problems in the future, a new COCOBOD Bill will be laid before Parliament. The proposed law will introduce an automatic producer price adjustment system that responds to changes in global cocoa prices, exchange rates, and production costs, while still guaranteeing a minimum price to protect farmers during market downturns.
A New Way to Finance Cocoa
Government also plans to overhaul how cocoa purchases are financed. Beginning with the 2026/27 crop season, the current funding model—described as costly and unsustainable—will be replaced with a system based on domestic cocoa bonds. These bonds will be issued locally to raise funds for cocoa purchases and repaid within the same crop year, reducing long-term debt exposure.
Under the new framework, COCOBOD will have greater flexibility to sell cocoa beans in varying quantities to local processors, a move expected to encourage private investment and expand downstream activities within Ghana.
Driving Local Processing and Jobs
In a major push for value addition, government says at least half of Ghana’s cocoa beans will be processed locally from the 2026/27 season. State-owned entities such as the Produce Buying Company (PBC) and the Cocoa Processing Company are to be revived and repositioned to play leading roles in domestic buying and processing.
Officials believe this shift will not only reduce dependence on raw bean exports but also create jobs, support local industries, and increase earnings from cocoa products such as butter, liquor, and powder.
Cleaning Up the Balance Sheet
The reform agenda also tackles COCOBOD’s heavy debt burden. Government will seek parliamentary approval to convert approximately GHC 5.8 billion in legacy debt owed to the Ministry of Finance and the Bank of Ghana into equity. This move is intended to restore COCOBOD’s financial position and improve its ability to operate under the new financing model.
In addition, road-related liabilities amounting to GHC 4.35 billion will be transferred from COCOBOD to the Ministry of Roads and Highways, allowing the cocoa regulator to focus on its core mandate.
Prices, Accountability, and Oversight
For the remainder of the 2025/26 cocoa season, the Producer Price Review Committee has fixed the producer price at GHC 41,392 per metric ton, or GHC 2,587 per bag. This ensures that farmers receive about 90 percent of the achieved gross free-on-board (FOB) price, despite recent declines in global cocoa prices.
To restore public confidence, the Attorney General has been instructed to commission a forensic audit and criminal investigation into COCOBOD’s operations over the past eight years. The Ministry of Finance will also enforce stricter controls to reduce costs, streamline operations, and eliminate wasteful spending.
Government officials say the reforms are designed to put farmers first, rebuild credibility, and reposition Ghana’s cocoa sector for a more resilient and sustainable future.
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Source: Africa Publicity
