Ghana’s Cocoa Sector: Emerging Challenges and Policy Considerations

Ghana’s cocoa sector, which for decades has been regarded as the backbone of the country’s economy, is currently facing a structural crisis. The Ghana Cocoa Board (COCOBOD) is under severe financial strain, with debts running into billions of cedis. These debts were accumulated through quasi-fiscal operations, institutional inefficiencies, and other structural challenges. Additionally, COCOBOD failed to secure the traditional syndicated financing facility used to support cocoa purchases.

These challenges have culminated in delayed payments, leaving thousands of farmers unpaid for months after delivering their cocoa. The situation has had direct consequences for farmer welfare and rural livelihoods. The severity of the crisis necessitated an emergency Cabinet meeting to determine corrective measures. Among the reforms announced was the decision to reduce the producer (farm-gate) price paid to farmers......

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