Gov’t Moves to Reassign COCOBOD to Finance Ministry as Legislative Process Begins
The government has initiated steps to place the Ghana Cocoa Board (COCOBOD) under the oversight of the Ministry of Finance (MoF), signalling a major shift in the governance of one of the country’s most critical export sectors.
The decision, now before Parliament through proposed amendments to the COCOBOD Act, 1984 (PNDCL 81), seeks to enhance fiscal discipline, strengthen accountability, and address long-standing financial vulnerabilities within the cocoa industry.
For decades, COCOBOD has operated under the Ministry of Food and Agriculture (MoFA), supervising policy direction in cocoa production, pricing, exports, and farmer support programmes. However, persistent fiscal challenges in recent years have triggered calls for restructuring.
The 2025 Budget cited severe pressures—declining output, high debt levels, smuggling, rollover contracts with unfavourable terms, and ballooning quasi-fiscal costs. Notably, cocoa roads alone accounted for nearly 67 per cent of COCOBOD’s total debt burden.
In response, the government has rolled out a set of interventions to restore stability. Production volumes, which dropped to 530,783 metric tonnes in the 2023/2024 season, have picked up, reaching 603,840 metric tonnes at the close of 2024/2025. Officials attribute this rebound to tougher anti-smuggling operations and improved incentives for farmers.
For the 2025/2026 season, output is expected to rise further to 650,000 metric tonnes. The projection is backed by GH¢2.4 billion earmarked for mass spraying under CODAPEC and GH¢2.7 billion for free fertiliser distribution. Government has also raised the farm-gate price from GH¢49,600 per metric tonne to GH¢58,000 per metric tonne in a bid to discourage smuggling and narrow cross-border price disparities.
Finance Minister Ato Forson has maintained that recent reforms have begun yielding results, particularly in relation to COCOBOD’s indebtedness. According to him, the institution’s outstanding debt has declined from GH¢32.0 billion in March 2025 to GH¢20.6 billion by September 2025, following payments totalling US$130 million and GH¢3.6 billion. He further noted that cocoa roads debt had reduced significantly—from GH¢21.0 billion to GH¢6.9 billion—after rationalisation efforts.
These gains, he argued, highlight the need for “stronger oversight and fiscal management” of the sector going forward.
Government believes that transferring supervisory authority to the Finance Ministry will consolidate progress achieved so far while setting the cocoa sector on a more sustainable financial path. If approved, the change is expected to usher in improved governance, tighter fiscal controls, and greater transparency in the management of cocoa revenue and expenditure.
Parliament is expected to consider the proposed amendments in the coming weeks.
