The Finance Minister, Dr. Cassiel Ato Forson has raised serious concerns over the state of Ghana’s cocoa sector, describing it as being in deep financial distress due to mismanagement, unsustainable debt, and declining production.
During the presentation of the 2025 Budget statement, the Finance Minister outlined key fiscal risks affecting the industry, warning of dire consequences for both the Ghana Cocoa Board (COCOBOD) and farmers.
“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, despite record-high world market prices,” the minister stated.
One of the biggest challenges facing the sector is a significant drop in production. According to the minister, cocoa production has fallen 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 a rollover of supply commitments to the next administration.
Ato Forson also revealed that Ghana’s forward sales contracts for the 2023/24 season were locked in at lower prices than current market rates, resulting in a revenue loss of $840 million. “These losses have not only affected COCOBOD but have also impoverished the Ghanaian farmer,” he added.
Additionally, the rollover of contracts in 2024 is expected to cause further financial losses of $495 million, with an estimated revenue loss of $4,000 for every tonne of cocoa delivered this year. The sector is also grappling with market price differentials and increased smuggling, which the minister said poses a long-term threat to sustainability.
COCOBOD’s financial difficulties are further reflected in its outstanding debt, which has reached GH₵32 billion, with GH₵11.92 billion due for payment in 2025. Meanwhile, outstanding cocoa road contracts amounted to GH₵21 billion ($1.3 billion) in 2024, of which only GH₵4.4 billion has been accounted for in COCOBOD’s financial statements.
