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The government has announced comprehensive reforms to overhaul Ghana’s cocoa sector after a review uncovered eight years of financial mismanagement at the Ghana Cocoa Board (COCOBOD).
Finance Minister Dr. Cassiel Ato Forson said the wide-ranging measures are designed to guarantee fair prices for farmers, strengthen the sector’s financial position, and ensure long-term sustainability.
Immediate Support for Farmers
As part of the reforms, cocoa farmers owed payments will receive immediate relief. COCOBOD has been directed to settle all outstanding payments to affected farmers without delay.
In addition, a new COCOBOD Bill will be presented to Parliament to introduce automatic producer price adjustments based on world market prices, exchange rates, and other relevant variables. The legislation will also guarantee a minimum producer price to protect farmers from market volatility.
New Financing Model
Beginning with the 2026/27 crop season, the government will implement a new financing model to replace what it described as an unsustainable system.
Under the new approach, domestic cocoa bonds will be issued to finance cocoa purchases, with proceeds repaid within each crop year. The model is expected to improve financial discipline and reduce long-term debt accumulation.
COCOBOD will also be allowed to sell beans of any volume to local processors, a move aimed at promoting value addition and job creation within the country.
Boost for Local Processing
The state-owned Produce Buying Company (PBC) and the Cocoa Processing Company will be revived to spearhead domestic buying and processing efforts.
From the 2026/27 crop season, at least 50% of Ghana’s cocoa beans will be processed locally — a significant shift from the country’s long-standing reliance on raw bean exports.
Debt and Liability Restructuring
To address COCOBOD’s inherited debt burden, the government will seek parliamentary approval to convert approximately GHC 5.8 billion in legacy debt owed to the Ministry of Finance and the Bank of Ghana into equity.
Additionally, road-related liabilities amounting to GHC 4.35 billion will be transferred to the Ministry of Roads and Highways.
Officials say these measures will restore COCOBOD’s equity position, strengthen its balance sheet, and support the implementation of the new financing framework.
Producer Price Adjustments
The Producer Price Review Committee has set a new producer price for the remainder of the 2025/26 season at GHC 41,392 per tonne and GHC 2,587 per bag. The adjustment ensures farmers receive 90% of the achieved gross Free On Board (FOB) price despite falling global market prices.
Accountability Measures
Dr. Forson further disclosed 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 COCOBOD’s operations, cut costs, and eliminate wasteful expenditure as part of broader governance reforms.
The government expressed gratitude to cocoa farmers and industry stakeholders for their patience, stating that the reforms are intended to protect farmers’ livelihoods and reposition Ghana’s cocoa industry for sustainable growth.
