The government has announced comprehensive reforms to restructure Ghana’s cocoa sector following a review that revealed eight years of financial mismanagement.
Finance Minister Dr. Cassiel Ato Forson said the measures are aimed at ensuring fair prices for farmers, restoring financial discipline, and securing the long-term sustainability of the industry.
As part of immediate interventions, the Ghana Cocoa Board (COCOBOD) has been directed to clear all outstanding payments owed to cocoa farmers without delay.
A new COCOBOD Bill will also be presented to Parliament to introduce automatic producer price adjustments. The proposed legislation will link producer prices to world market trends, exchange rates, and other key variables while guaranteeing farmers a minimum price.
Starting with the 2026/27 crop season, a new financing model will replace the current unsustainable system. Domestic cocoa bonds will fund bean purchases, with repayments completed within the same crop year. COCOBOD will be allowed to sell cocoa beans in any quantity to local processors to boost value addition and create jobs.
The state-owned Produce Buying Company (PBC) and Cocoa Processing Company will be revived to lead domestic purchasing and processing. At least 50% of Ghana’s cocoa beans are expected to be processed locally from the 2026/27 season.
To address inherited liabilities, government will seek parliamentary approval to convert about GH¢5.8 billion in legacy debt owed to the Ministry of Finance and the Bank of Ghana into equity. Additionally, road-related debts amounting to GH¢4.35 billion will be transferred to the Ministry of Roads and Highways. Officials say these measures will strengthen COCOBOD’s balance sheet, restore its equity position, and support the new financing framework.
Meanwhile, the Producer Price Review Committee has approved a new producer price of GH¢41,392 per tonne and GH¢2,587 per bag for the remainder of the 2025/26 season. The adjustment ensures farmers receive 90% of the achieved gross Free On Board (FOB) price despite declining global cocoa prices.
Dr. Forson further revealed 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 sector operations, reduce costs, and eliminate wasteful expenditure.
The government thanked cocoa farmers and stakeholders for their patience, emphasizing that the reforms are intended to protect farmers’ interests and reposition Ghana’s cocoa industry for sustainable growth.
