By Spendilove Incoom
Ghana’s cocoa sector, once a pillar of the economy, is now struggling due to years of mismanagement, Finance Minister Dr. Cassiel Ato Forson has revealed.
Presenting the 2025 Budget Statement in Parliament, he noted that despite record-high global cocoa prices, the sector is failing to contribute meaningfully to the economy.
“The cocoa sector, which has long been the backbone of the Ghanaian economy, is sadly on its knees owing to gross mismanagement in the last few years and is now unable to support the economy as it should,” he stated.
The Finance Minister highlighted a sharp decline in production, noting that cocoa output has dropped by nearly 50% over the past three years. In the 2023/2024 crop season, COCOBOD was unable to supply 330,000 tonnes of cocoa to meet its full contractual obligations, leading to rollover contracts for subsequent supply.
The Minister also warned that the growing price gap between world market prices and local farmer payments is fuelling smuggling, which threatens the long-term sustainability of the industry.
Meanwhile, COCOBOD is burdened with a massive GH¢32 billion debt, with GH¢11.92 billion due for repayment in 2025. The sector is also weighed down by cocoa road contracts totalling GH¢21 billion, with only GH¢4.4 billion accounted for in COCOBOD’s financial statements.
With these pressing issues, the government faces a tough challenge in stabilising the cocoa sector and ensuring fair earnings for farmers.
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