The International Monetary Fund has backed government’s cocoa sector stabilisation measures, urging swift implementation of structural reforms at Ghana Cocoa Board as authorities cut producer prices and overhaul the sector’s financing framework.
Responding to a query from Business and Financial Times, an IMF spokesperson said Ghana’s cocoa industry is facing pressure from weaker global prices, declining domestic output and liquidity constraints at COCOBOD.
The Fund described the sector as macro-critical, noting it accounts for close to 10 percent of export revenue and supports about 800,000 farming households.
“The most urgent priority is decisive implementation of COCOBOD’s turnaround strategy, including ending quasi-fiscal activities, establishing lower-cost financing and adopting key reforms,” the spokesperson said, adding that recently announced stabilisation measures will be an important step forward if fully executed.
This endorsement comes as the Ministry of Finance announced a series of reforms following an emergency Cabinet meeting on February 11, 2026. Authorities reduced the producer price for the remainder of the 2025/26 crop season to GH¢41,392 per tonne, equivalent to GH¢2,587 per bag effective February 12.
The adjustment follows a sharp fall in world cocoa prices from an average of US$7,200 per tonne at start of the season to about US$4,100 per tonne. Under the revised arrangement, farmers will receive 90 percent of a gross Free-On-Board price benchmarked at US$4,200 per tonne to cushion the global downturn’s impact. Government said the measure is intended to inject liquidity into the sector and expedite payments to farmers.
This price revision underscores the volatility confronting COCOBOD’s pricing framework. At the start of 2025/26 season, the producer price had been set at GH¢51,660 per tonne based on 70 percent of a gross FOB price of US$7,200 and an exchange rate of 10.25 cedis to the US dollar. Subsequent exchange rate pressures and pricing moves by Côte d’Ivoire prompted an interim increase to GH¢58,000 per tonne before the global price correction reversed margins.
Beyond pricing, government is introducing a new financing model to replace the syndicated loan structure that has been in place for more than three decades. The Ministry of Finance said domestic cocoa bonds will be issued to raise a revolving fund for cocoa purchases, with repayment within each crop year.
The previous off-taker financing model, adopted after delays in syndication, left COCOBOD dependent on buyers’ willingness to pre-finance purchases. The reforms also include a plan to convert about GH¢5billion of legacy debt owed the Ministry of Finance and Bank of Ghana into equity to restore positive equity on COCOBOD’s balance sheet. Additionally, cocoa roads liabilities have been reduced to GH¢4.35billion and will be transferred to the Ministry of Roads and Highways.
COCOBOD’s own turnaround strategy outlines measures to realign producer pricing to a gross FOB benchmark, cap industry costs, phase out quasi-fiscal expenditures and strengthen ministerial oversight.
The plan targets a reduction in industry costs from 56 percent of gross FOB to 10 percent over the medium-term and aims to eliminate budget deficits from the 2024/25 financial year.
The IMF said these reforms are consistent with vulnerabilities previously identified under Ghana’s Extended Credit Facility programme. While acknowledging government’s stabilisation steps, the Fund stressed that implementation will be critical to restoring financial viability and safeguarding export revenues.
With global prices still below earlier peaks and domestic output under pressure, the sector’s recovery will depend on cost containment, improved financing terms and credible governance reforms. Government has also directed forensic audits into COCOBOD’s recent operations as part of efforts to strengthen accountability.
The IMF’s support signals continued scrutiny of the cocoa sector’s role in the country’s macroeconomic adjustment, as authorities seek to stabilise a key export earner amid volatile commodity markets.
