Ghana approves emergency cocoa sector reforms to fast-track farmer payments  

GHANA – Ghana has approved emergency measures aimed at expediting payments to cocoa farmers nationwide following a lengthy Cabinet meeting to address a deepening liquidity crisis in the cocoa sector. 

Felix Kwakye Ofosu, the Minister of State in charge of Government Communications, said Cabinet had also endorsed what he described as “the most far-reaching reforms in the history of the cocoa sector.”  

The reforms are intended to shift Ghana’s cocoa industry away from an overreliance on raw bean exports toward greater domestic value-added production. 

The emergency intervention follows months of payment delays to farmers who supplied cocoa beans from November 2025. The Ghana Cocoa Board (COCOBOD) is reported to owe Licensed Buying Companies (LBCs) more than GH¢10 billion (US$800 million) in outstanding payments, creating severe cash flow challenges across the supply chain. 

In several cocoa-growing regions, farmers have complained that they have not been paid for beans delivered since late 2025. Many have warned that the delays are affecting their livelihoods, access to healthcare, and ability to meet household and education-related expenses. 

In October 2025, the government set the cocoa farmgate price at GH¢58,000 per metric tonne (US$4,640), equivalent to roughly GH¢3,228 (US$258) per 64-kilogramme bag. 

The price adjustment coincided with the introduction of a new cocoa financing regime after COCOBOD failed to secure syndicated loans for the 2025/26 crop season. 

Under the revised structure, farmers sell cocoa beans to licensed buying companies, which then sell the beans to COCOBOD. COCOBOD, through its marketing arm, exports the cocoa to international buyers.  

However, prolonged payment delays have forced several LBCs operating under COCOBOD to suspend purchases, worsening the situation for farmers. 

The cocoa sector remains a critical pillar of Ghana’s economy, contributing significantly to export earnings, rural employment, and foreign exchange inflows. Despite its importance, COCOBOD has in recent years struggled with rising debt levels, higher input costs, declining production, and difficulties in securing affordable financing. 

Speaking after the emergency Cabinet session, Kwakye Ofosu said the reforms would prioritise domestic processing and institutional restructuring. 

“We have just concluded a lengthy cabinet meeting, which was an emergency session that discussed the cocoa sector and matters arising there. And at the end of the emergency session, decisive measures have been agreed upon regarding expedited payments of cocoa farmers, regarding the implementation of the most drastic reforms in the cocoa sector,” he said. 

He added that comprehensive restructuring would be carried out at COCOBOD to improve efficiency, transparency, and overall management.  

The Minister for Finance is expected to address the nation on February 12 to outline the detailed implementation plan and financial framework for the approved reforms. 

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