Finance Minister Dr. Cassiel Ato Forson has announced sweeping reforms in Ghana’s cocoa sector aimed at ensuring financial viability and long-term sustainability. Speaking at a press briefing on Thursday, February 12, Dr. Forson disclosed that Cabinet has approved measures to guarantee fair prices for farmers and strengthen the operations of the Ghana Cocoa Board (COCOBOD).
Among the key decisions is the immediate payment of all outstanding arrears owed to cocoa farmers. Dr. Forson emphasized that this directive is intended to bring relief to farmers who have endured months of financial strain.
He further revealed that a new COCOBOD Bill will soon be laid before Parliament. The legislation will introduce an automatic adjustment mechanism for producer prices, aligning them with movements in the world market price, exchange rate, and other key variables. Under the new framework, farmers will be assured of receiving at least 70 percent of the gross Free on Board (FOB) price.
Addressing the financing challenges that have plagued the sector, Dr. Forson explained that the existing syndicated loan model has proven unsustainable. In its place, government will introduce a domestic cocoa bond system to raise funds for purchases and operations. This revolving fund, he noted, will allow COCOBOD to optimize market prices, revive indigenous Licensed Buying Companies, and restore the state-owned Produce Buying Company (PBC) to full operations.
The Minister stressed that the reforms are designed not only to stabilize the sector but also to promote value addition and job creation through increased local processing of cocoa beans. “These measures will secure the livelihoods of our farmers while positioning Ghana’s cocoa industry for sustainable growth,” he said.
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