Here are key reforms announced by Ato Forson to stabilise Ghana's cocoa sector

The government has unveiled sweeping reforms aimed at stabilising Ghana's cocoa industry, ensuring fair prices for farmers, and promoting long-term sustainability.

Finance Minister Dr. Cassiel Ato Forson announced the measures on Thursday, February 12, detailing pricing, financial, processing, infrastructure, and governance changes designed to strengthen the sector.

1. Pricing & Legislative Changes
New Producer Price: The producer price for the remainder of the 2025–2026 crop season has been adjusted to GH¢41,392 per tonne (GH¢2,587 per bag). This rate reflects payment of 90% of the achieved gross FOB ($4,200/tonne), cushioning farmers against falling world cocoa prices.

Automatic Price Adjustment: A new Cocoa Board Bill will be presented to Parliament to introduce an automatic adjustment of producer prices based on world market trends and exchange rates. The legislation guarantees farmers a minimum of 70% of the gross FOB price, ensuring protection against global price fluctuations.

Immediate Arrears Payment: COCOBOD has been directed to immediately pay all outstanding amounts owed to cocoa farmers, providing urgent relief to those affected by delays in previous seasons.

2. Financial Restructuring
Debt Conversion: To strengthen COCOBOD's balance sheet, GH¢5.8 billion in legacy debt owed to the Ministry of Finance and Bank of Ghana will be converted to restore positive equity.

New Financing Model: The government will replace the outdated 32-year-old syndicated loan model and the failed buyer-led model of 2024 with a new system using domestic cocoa bonds for the 2026–2027 season. The revolving fund will ensure liquidity throughout the crop year and enable timely cocoa purchases.

Transfer of Road Liabilities: COCOBOD's GH¢4.35 billion in road construction liabilities will be transferred to the Ministry of Roads and Highways and the Ministry of Finance, relieving the board of non-core financial burdens.

3. Boosting Domestic Processing & Value Addition

Mandatory Local Processing: From the 2026–2027 season, a minimum of 50% of all cocoa beans must be processed locally. For the remainder of the current 2025–2026 season, all remaining beans will be allocated for domestic processing.

Revival of State Entities: The Cocoa Processing Company (CPC) and Produce Buying Company (PBC) will be prioritised for revival to lead local processing and cocoa buying respectively.

Support for Indigenous Companies: The new financing model is designed to revive indigenous licensed buying companies that were previously sidelined, ensuring a more inclusive cocoa value chain.

4. Infrastructure & Governance
Agricultural Road Fund: COCOBOD will no longer fund road construction. Future cocoa roads will be financed through a US$500 million World Bank facility secured by the government.

Forensic Audit & Criminal Investigation: The Attorney General has been directed to commission a concurrent forensic audit and criminal investigation into COCOBOD's operations over the past eight years.

Cost-Cutting Measures: The Ministry of Finance will implement immediate reforms to curb wasteful and uncontrolled expenditure at COCOBOD, improving financial discipline and operational efficiency.

Dr. Forson emphasised that the reforms are designed to restore confidence in the cocoa sector, provide timely payments to farmers, promote local value addition, and ensure the financial sustainability of Ghana's cocoa industry.

“These reforms mark a new chapter for Ghana's cocoa industry. We are committed to protecting the interests of farmers, strengthening the sector's finances, and ensuring long-term sustainability for one of our most vital industries,” he said.