Ghana Navigates Cocoa Sector Crisis: COCOBOD Faces GH¢32.9bn Debt Amid Price Slumps and Reform Calls

Ghana's cocoa sector is at a critical crossroads as the National Democratic Congress (NDC) Majority Caucus reveals that the Ghana Cocoa Board (COCOBOD) entered 2025 burdened by a staggering GH¢32.9 billion debt. This financial strain coincides with a sharp reduction in cocoa farmgate prices, which plummeted from GH¢3,625 to GH¢2,587 per bag following a 76% drop in global market prices between early 2025 and February 2026. In response, the government has announced a sweeping series of reforms, including a planned GH¢30 billion domestic syndicated bond and new legislation designed to restore the sector's financial health and long-term sustainability.

Finance Committee Chairman Isaac Adongo has attributed the board's current state to systemic mismanagement by the previous New Patriotic Party (NPP) administration. Adongo and other officials, including Dr. Peter Boamah Otokunor, highlighted operational inefficiencies such as the accumulation of thousands of uncleared jute sacks at ports and excessive borrowing that caused COCOBOD's liabilities to exceed its assets. To mitigate this, the government has already cleared GH¢3.4 billion in loans and plans to convert GH¢5.8 billion of legacy debt into equity. Furthermore, the proposed reforms aim to restrict COCOBOD to its core mandates, stripping away non-essential activities that have historically drained the board's resources.

The price adjustments have sparked localized unrest, most notably a protest in Sefwi-Wiawso on February 19, 2026, where farmers expressed fears that the current pricing makes the industry unprofitable. However, the legitimacy of these demonstrations has been questioned by government officials. Deputy Minister Samson Ahi characterized the protests as "politically engineered," while reports emerged of non-farmers being paid GH¢250 to participate. Despite the political friction, the Member of Parliament for Sefwi Wiawso, Aful Benteh Kofi, has urged farmers to remain patient, emphasizing that the price volatility is a direct result of international market realities rather than a lack of government commitment.

Looking ahead, the government is drafting a legislative proposal to introduce a dynamic pricing system. This mechanism is intended to align farmgate prices more closely with global market trends, ensuring that Ghanaian farmers can benefit from price surges while maintaining a safety net during downturns. Beyond pricing, the state is shifting focus toward domestic processing and value addition to reduce vulnerability to international market shocks. While the NDC Majority has rejected calls from the Minority for an emergency bailout—labeling further debt-financed solutions as imprudent—the successful issuance of the GH¢30 billion domestic bond is viewed as the primary vehicle for stabilizing the industry and securing the livelihoods of rural cocoa farmers.