President John Dramani Mahama has revealed that Ghana’s cocoa sector is in deep financial crisis, with the Ghana Cocoa Board (COCOBOD) owing a total debt of GHC32.5 billion.
Delivering his State of the Nation Address in Parliament on Thursday, February 27, 2025, he disclosed that GHC9.7 billion of this debt is due for payment by September 2025.
According to the President, COCOBOD’s financial struggles worsened when it failed to deliver 333,767 metric tons of cocoa that had already been sold at $2,600 per ton during the 2023/2024 season.
The contracts were then rolled over into the 2024/2025 season, causing massive revenue losses for both COCOBOD and cocoa farmers.
“For every ton of cocoa delivered under these rolled-over contracts, COCOBOD and Ghanaian farmers are losing $4,000 in revenue,” President Mahama told Parliament.
He further revealed that so far, 210,000 metric tons have been supplied, leading to a revenue loss of $840 million. By the time all outstanding contracts are fulfilled, another $495 million will be lost.
Beyond this, President Mahama also pointed out that COCOBOD’s road project commitments total 21.7 billion cedis, but only 4.4 billion cedis is accounted for in its official debt figures. He attributed this financial burden to decisions made in 2019 and 2020 to award over $1 billion in road contracts ahead of the elections.
President Mahama expressed deep concern over the situation, noting that these financial challenges are affecting cocoa farmers and the economy at large.
He assured Ghanaians that his administration is committed to fixing the problems within the cocoa sector and ensuring that farmers receive fair compensation for their hard work.
Reporting by Stephen Freeman, Accra.
