Nation loses over US$1.1bn to cocoa smuggling
Ghana, the world’s second-largest cocoa producer, has lost more than USD1.1 billion to cocoa smuggling between the 2021/22 and 2024/25 crop seasons, according to official data from the Ghana Cocoa Board (COCOBOD).
The massive leakage, equivalent to tens of thousands of tonnes of cocoa, has crossed borders into Côte d’Ivoire and Togo, draining the nation’s foreign exchange, weakening the cedi, and threatening the livelihoods of farmers who depend on the sector for survival.
The losses, which COCOBOD describes as “unsustainable and economically dangerous”, have reverberated throughout the entire cocoa value chain. Licensed Buying Companies (LBCs) reportedly lost over GHS1.6 billion, while hauliers recorded cumulative losses nearing GHS182 million within four years.
At the heart of the crisis are Ghanaian cocoa farmers, who often smuggle their produce to neighbouring countries where they receive 20 to 30 per cent higher prices.
The incentive to sell across the border has become irresistible for many, particularly in border districts where enforcement is weak. The price gap has created fertile ground for well-organised smuggling syndicates, often operating under the cover of darkness through porous borders.
The Western North, Western South, Volta, and Brong Ahafo regions have emerged as major smuggling corridors, with thousands of tonnes of cocoa slipping out annually through unofficial routes.
These regions, which host some of Ghana’s largest cocoa-producing districts, have become key battlegrounds in the fight to curb illegal cross-border trade.
The government, through COCOBOD and national security agencies, has intensified efforts to contain the crisis.
Measures include raising producer prices to reduce the price disparity with Côte d’Ivoire, tightening border surveillance, and launching public education campaigns to sensitize border communities on the economic consequences of smuggling.
However, experts warn that these measures have been repeated over the years with limited long-term success, as smuggling networks are deeply entrenched and well coordinated. Many of these groups leverage local knowledge of unapproved routes and the complicity of community actors to evade detection.
Cocoa remains Ghana’s second-largest source of foreign exchange after gold, and every tonne smuggled out represents lost revenue for the state.
The consequences extend far beyond the sector, reducing foreign reserves, weakening the cedi, and exerting pressure on inflation. These losses also constrain funding for key projects such as cocoa roads, farmer support initiatives, and rural infrastructure development.
Over time, the unchecked outflow threatens Ghana’s ability to compete globally and undermines decades of investment in sustaining the cocoa economy.
