The government has announced comprehensive reforms to overhaul Ghana’s cocoa sector following a review that exposed eight years of financial mismanagement.
Finance Minister Dr. Cassiel Ato Forson said the measures aim to ensure fair prices for farmers, strengthen the sector’s finances, and guarantee long-term sustainability.
Immediate Support for Farmers
Cocoa farmers owed payments will receive immediate relief, with the Cocoa Board (COCOBOD) directed to pay all affected farmers without delay. A new COCOBOD bill will also be presented to Parliament to introduce automatic producer price adjustments based on world market prices, exchange rates, and other variables, while guaranteeing a minimum price.
New Financing Model
A new financing model will be implemented for the 2026/27 crop season, replacing the previous unsustainable system. Domestic cocoa bonds will fund purchases, with proceeds repaid within each crop year.
Under the model, COCOBOD can sell beans of any volume to local processors, promoting value addition and job creation.
Local Processing Boost
The state-owned Produce Buying Company (PBC) and the Cocoa Processing Company will be revived to lead domestic buying and processing. From the 2026/27 crop season, at least 50% of cocoa beans will be processed locally.
Debt and Liability Management
To address COCOBOD’s inherited debts, the government will seek parliamentary approval to convert about GHC 5.8 billion of legacy debt owed to the Ministry of Finance and the Bank of Ghana into equity.
Road-related liabilities of GHC 4.35 billion will also be transferred to the Ministry of Roads and Highways. These measures are expected to restore COCOBOD’s equity, strengthen its balance sheet, and support the new financing model.
Producer Prices and Market Adjustments
The Producer Price Review Committee has set the new producer price for the remainder of the 2025/26 season at GHC 41,392 per ton and GHC 2,587 per bag, ensuring farmers receive 90% of the achieved gross FOB price amid falling world market prices.
Accountability and Oversight
Dr. Forson added that the Attorney General has been directed to commission a forensic audit and criminal investigation into COCOBOD’s operations over the past eight years. The Ministry of Finance will also streamline operations, cut costs, and curb wasteful expenditure.
The government thanked cocoa farmers and stakeholders for their patience, emphasizing that the reforms are designed to protect farmers’ interests and transform Ghana’s cocoa industry.