Ghana to introduce new COCOBOD bill

GHANA – Ghana’s government has announced plans to introduce a new COCOBOD Bill that will reform the governance, financing and producer pricing framework of the country’s cocoa sector, including a guarantee that cocoa farmers will receive not less than 70% of the gross Free-on-Board (FOB) price. 

Presenting the 2026 Mid-Year Budget Review in Parliament, Finance Minister Dr Cassiel Ato Forson said the proposed legislation will repeal and replace the Ghana Cocoa Board Act, 1984 (PNDCL 81), which has governed the cocoa industry for more than four decades. 

“To modernise the governance and financing of the sector, government will submit a new COCOBOD Bill to Parliament to repeal and replace the Ghana Cocoa Board Act, 1984 (PNDCL 81),” Dr Forson said. 

According to the Finance Minister, the new legislation will introduce a producer pricing mechanism that aligns payments to cocoa farmers with movements in international cocoa prices, exchange rate fluctuations and other relevant market conditions. 

“The proposed legislation will introduce a new producer pricing mechanism that aligns producer prices with movements in international cocoa prices, exchange rate developments, and other relevant market conditions,” he said. 

Dr Forson noted that the revised pricing framework is intended to ensure farmers receive a greater share of the export value generated from cocoa sales. 

“We will also guarantee cocoa farmers not less than 70 percent of the gross Free-on-Board (FOB) price,” he stated. 

Beyond producer pricing, the proposed COCOBOD Bill will establish a new financing framework for cocoa purchases and related operations. The government said the reforms are designed to restore the long-term financial sustainability and operational efficiency of the Ghana Cocoa Board. 

The legislation will also introduce measures to promote domestic value addition by requiring that at least half of Ghana’s cocoa production be processed within the country. 

“The Bill will also ensure that not less than 50 percent of cocoa beans produced in Ghana is processed here in Ghana,” Dr Forson said. 

He added that the planned reforms are intended to strengthen the cocoa industry’s financial position, improve farmer incomes and expand local processing capacity. 

“These reforms will place Ghana’s cocoa sector on a stronger financial footing, improve returns to cocoa farmers, ensure value addition, and position the industry for sustainable long-term growth,” he said. 

The announcement follows the recent release of GH¢2.6 billion (US$229.4 million) by COCOBOD to Licensed Buying Companies to facilitate payments to cocoa farmers for beans purchased across Ghana’s cocoa-growing regions during the 2025/26 crop season. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.