Ghana loses over US$1.1B to cocoa smuggling in four years – COCOBOD
Widespread cocoa smuggling to Côte d’Ivoire and Togo continues to drain Ghana’s economy despite government measures to curb the trade.
GHANA – Ghana has lost more than US$1.1 billion to cocoa smuggling between the 2021/22 and 2024/25 seasons, according to data from the Ghana Cocoa Board (COCOBOD).
The report indicates that tens of thousands of tonnes of cocoa were illegally exported across borders into Côte d’Ivoire and Togo, undermining state revenue and farmer livelihoods.
The largest losses were recorded in the 2023/24 season, when 253,212 tonnes of cocoa were smuggled, costing the country approximately US$658.3 million.
In 2021/22, 137,728 tonnes were smuggled, resulting in losses of US$352.6 million, while the 2022/23 season saw 52,690 tonnes worth US$131.7 million illegally exported.
The ongoing 2024/25 season has so far recorded 29,623 tonnes smuggled, translating to US$143.7 million in losses.
These activities have significantly affected the cocoa value chain. Licensed Buying Companies (LBCs) lost more than GH¢1.6 billion (US$147.13M) over the four-year period, while hauliers reported losses of nearly GH¢182 million (US$16.74M).
Smuggling has been largely driven by the price gap between Ghana and its neighbors, where cocoa prices are reported to be 20 to 30 percent higher. This disparity encourages farmers to sell their produce across borders for better returns.
The Western North, Western South, Volta, and Brong Ahafo regions have become major exit points for smuggled cocoa, facilitated by porous borders and well-established smuggling networks.
To address the situation, COCOBOD has introduced several measures, including increasing producer prices, enhancing border surveillance in collaboration with security agencies, and conducting public education campaigns in border communities.
However, experts have cautioned that these actions alone may not be sufficient, as similar measures in the past have had limited impact.
Cocoa remains Ghana’s second-largest source of foreign exchange after gold. Losses from smuggling weaken the cedi, reduce foreign reserves, and constrain funding for key infrastructure and farmer support programs.
Analysts have emphasized that closing the price gap with neighboring countries and adopting advanced monitoring technologies could help curb the persistent problem.
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