Accra: As part of efforts to stabilize Ghana's cocoa sector, the government, following a Cabinet meeting, has announced ten key reforms for the industry. These reforms come at a time when Ghana's cocoa sector has faced criticism and concerns over delayed payments to farmers. Farmers have expressed frustration, warning that the financial strain is not only affecting livelihoods but also impacting their health.
According to Ghana Web, the Minister of Finance, Dr. Cassiel Ato Forson, revealed that these reforms are designed to strategically position the sector, cover financial losses, and increase production capacity and value addition. The reforms include the repayment of all outstanding arrears owed to cocoa farmers, with the Ghana Cocoa Board (COCOBOD) directed to begin payments for the 2025/2026 crop season. Additionally, there will be an automatic producer price adjustment to align with global market prices, ensuring a minimum of 70 percent of the gross FOB price is paid to cocoa farmers.
The government will also implement a new cocoa financing model, replacing the outdated syndicated loan model with domestic cocoa bonds for the 2026-2027 season. A forensic audit and criminal investigation of COCOBOD's activities over the past eight years have been ordered by the Cabinet. Plans are underway to revive the Cocoa Processing Company (CPC) and the Produce Buying Company (PBC).
Furthermore, GHS5.8 billion in legacy debt will be converted into equity to strengthen COCOBOD's balance sheet, and GHS4.35 billion in road construction liabilities will be transferred to the Ministry of Roads and Highways and the Ministry of Finance. Cost-cutting measures will be implemented to improve financial discipline and operational efficiency at COCOBOD.
A mandatory processing of 50% of locally produced cocoa will be enforced from the 2026-2027 season, with all remaining beans for the 2025-2026 season allocated for domestic processing. Lastly, a new domestic bond financing scheme will replace the syndicated loan and buyer-financed arrangements for cocoa purchases.