Ghana’s cocoa sector, once the backbone of the country’s economy, is facing significant challenges. Finance Minister Dr. Cassiel Ato Forson presented the 2025 Budget and Economic Policy to Parliament, highlighting the sector’s struggles. The theme of the budget, “Resetting Ghana for the economy we want,” couldn’t be more apt, as the sector’s decline threatens the livelihoods of millions.
COCOBOD, the state-owned cocoa regulator, is grappling with an outstanding debt of 32 billion Cedis. This substantial liability is compounded by declining cocoa production, which has dropped by nearly 50% over the past three years. The consequences are far-reaching, with COCOBOD unable to meet its full contractual obligations, resulting in a shortfall of 330,000 tonnes.
The sector’s financial woes are exacerbated by forward sales contracts locked in at lower prices than current market rates. This has led to revenue losses of US$840 million for both COCOBOD and impoverished Ghanaian farmers. The minister emphasized that these contracts, combined with unsustainable debt and quasi-fiscal expenditures, have pushed the sector to the brink.
To address these challenges, the government must implement reforms to ensure the sector’s viability. This includes tackling market price differentials, smuggling, and the substantial financial liabilities facing COCOBOD. With the sector’s contribution to Ghana’s economy and the livelihoods of millions at stake, decisive action is needed to reset the cocoa sector for a sustainable future.
Ruth Abla ADJORLOLO
