Heavy cocoa, gold export dependence puts economy at risk – Analyst
By Solomon Nartey
Economic Analyst Emmanuel Boateng has cautioned that Ghana’s heavy dependence on cocoa and gold exports leaves the economy highly vulnerable to global market shocks.
Speaking on the Business Breakfast Show on ZED 101.9 FM this morning, Mr Boateng explained that Ghana remains a price-taker on the international market, where the value of commodities such as cocoa and gold is dictated by global demand and supply dynamics.
He stressed that any sharp decline in prices, whether driven by weakening demand or changes in global interest rates, would directly reduce Ghana’s export revenues.
“Any sharp decline in prices, whether driven by reduced demand or shifts in global interest rates, will directly cut into Ghana’s export revenue. While high cocoa and gold prices can create temporary surpluses, an oversupply on the world market can depress prices and erode our earnings. This overreliance on a narrow export base is very risky,” Mr Boateng warned.
The economic analyst further noted that climate change, cross-border smuggling and illegal mining are intensifying the threats to Ghana’s two major exports.
He explained that cocoa yields are increasingly undermined by erratic weather patterns, pests such as the swollen-shoot disease, and widespread smuggling that deprives the nation of valuable revenue.
“Cocoa yields are under serious threat from climate change, erratic rainfall patterns, and pests such as the swollen-shoot disease. Added to this is the challenge of large-scale smuggling, which deprives the country of much-needed revenue,” Mr Boateng indicated.
The economic analyst cautioned that illegal small-scale mining, popularly known as galamsey, continues to destroy fertile cocoa lands, with many farmers abandoning plantations and converting them into mining pits.
He concluded that unless Ghana diversifies its economy and strengthens safeguards around its key commodities, the country will remain exposed to external shocks and environmental risks.
