Ghana’s president-elect, John Dramani Mahama, has pledged to reform the country’s cocoa sector and restructure the state-run regulator, COCOBOD, in a bid to stimulate growth and improve efficiency in the world’s second-largest cocoa producer. Mahama criticized the current cocoa industry structure, where COCOBOD competes with farmers for profits, and expressed his desire to create a more equitable system.
In an interview with Reuters, Mahama questioned the current setup, asking, “Can we have a state enterprise that is the regulator and quality controller, and that creates an opportunity where the farmer is getting his money directly?” He hinted at private sector involvement in some areas handled by COCOBOD, which currently controls all aspects of cocoa production in Ghana, from seedlings to jute bag supplies for packing beans for exports.
Mahama’s proposed reforms aim to increase efficiency across the cocoa sector’s value chain, with the farmer as the primary beneficiary, not the bureaucracy. He blamed COCOBOD’s wasteful spending for depleting cocoa production funds and depriving farmers of optimal prices, leading many to turn to illegal mining or seek alternative livelihoods. The president-elect’s plans are seen as a welcome move, given Ghana’s cocoa production hit its lowest level in decades last season, dragged down by climate change, tree disease, and wildcat gold mining ¹.
The International Monetary Fund (IMF), which is administering a three-year, $3 billion rescue package with Ghana, has prompted COCOBOD to propose a turnaround plan to cut costs and increase farmers’ share of cocoa revenues. Mahama expressed his willingness to work with anyone to restore the sector’s former success, stating, “We’re willing to work with anybody if it’ll make the cocoa sector more efficient and bring back our cocoa production to what it was before” ¹.
As Mahama prepares to take office on January 7, his focus will be on revitalizing cocoa and crude oil production to aid economic recovery. The country’s economy is recovering from its worst crisis in a generation, and Mahama’s victory in the December 7 election was driven by voter dissatisfaction with the rising cost of living, instability, and falling production in the key cocoa and gold sectors.
The proposed reforms have been met with optimism from various stakeholders, who see it as an opportunity to streamline the sector and boost farmers’ profits. With cocoa production being a crucial part of Ghana’s economy, Mahama’s plans are expected to have a significant impact on the country’s economic growth and development.
In conclusion, Mahama’s vow to reform the cocoa sector and restructure COCOBOD is a significant move towards improving the livelihoods of cocoa farmers and stimulating economic growth in Ghana. As the country looks to recover from its economic crisis, the success of these reforms will be crucial in determining the future of the cocoa sector and the country’s economy as a whole.
Source: Africa Publicity
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