Ghana’s president-elect, John Dramani Mahama, has pledged to reform the cocoa sector and restructure the state-run Ghana Cocoa Board (COCOBOD) to enhance growth and efficiency in the world’s second-largest cocoa producer.
In an interview with newsmen, Mahama criticized the current structure, where COCOBOD competes with farmers for profits, calling for a system that prioritizes farmers’ earnings.
“Can we have a state enterprise that acts as a regulator and quality controller, ensuring farmers receive their money directly? We will explore how to restructure COCOBOD,” Mahama said, hinting at private sector involvement in some areas currently managed by the regulator.
COCOBOD oversees every aspect of Ghana’s cocoa production, from seedlings to export packaging. However, its administrative costs have more than tripled since 2018, drawing scrutiny and raising concerns about inefficiency and wasteful spending.
Mahama, who won the Dec. 7 election by a wide margin, attributed COCOBOD’s spending practices to depleted production funds and suboptimal cocoa prices, driving some farmers to illegal mining or alternative livelihoods.
With cocoa production at its lowest in decades, hampered by climate change, disease, and illegal gold mining, Mahama aims to increase efficiency and boost farmers’ earnings across the cocoa value chain.
The International Monetary Fund (IMF), currently overseeing a $3 billion economic rescue package with Ghana, has urged COCOBOD to implement a turnaround plan to cut costs and increase farmers’ share of revenues.
Mahama, who takes office on Jan. 7, 2025, said his administration would also focus on improving crude oil output and strengthening non-tax revenue streams to support economic recovery after the country’s worst financial crisis in a generation.
“We’re willing to collaborate with anyone to make the cocoa sector more efficient and restore production to its former heights,” he added.
