The "backbone of the Ghanaian economy" is undergoing a major structural overhaul. At a high-profile press conference today, Mr. Isaac Adongo, Chairman of Parliament’s Finance
Committee, detailed a comprehensive "Cocoa Sector Reform" agenda aimed at rescuing the Ghana Cocoa Board (COCOBOD) from a legacy of debt and transitioning the nation from a raw bean exporter to a global processing hub.
The reforms, championed by the NDC Majority Caucus, come at a critical time as the sector navigates a volatile global market and internal financial distress.
1. The "Non-Core" Exit: A New Legislative Mandate
The center-piece of the reform is a new COCOBOD Bill set to be laid before Parliament. The legislation will legally prohibit COCOBOD from engaging in "quasi-fiscal" and non-core activities that have historically strained its balance sheet.
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No More Cocoa Roads: All ongoing cocoa road projects are being transferred to the Ministry of Roads and Highways.
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Financial Rescue: The government will convert GH₵5.8 billion in legacy debt owed to the Ministry of Finance and the Bank of Ghana into equity to restore the board’s financial health.
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Core Focus: COCOBOD will be mandated to return to its primary mission: increasing yields, improving the value chain, and protecting farmer welfare.
2. The 50% Processing Target
In a bold move toward industrialization, the government has set a mandatory threshold for local value addition.
| Phase | Timeline | Processing Target |
| Immediate | Remainder of 2025/26 Season | All remaining beans allocated to local processors. |
| Medium Term | Starting 2026/2027 Season | Minimum 50% of all cocoa beans must be processed locally. |
To achieve this, the state-owned Cocoa Processing Company (CPC) and the Produce Buying Company (PBC) are being revived to lead the industrial charge.
3. Producer Price Realities: The "Mid-Season" Cut
The reform has not come without pain. Citing a sharp drop in global cocoa prices (falling from a 2024 peak toward $4,000 per tonne), the government has adjusted the farmgate price.
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New Price: Reduced from GH₵3,625 to GH₵2,587 per 64kg bag.
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Guaranteed Share: The new COCOBOD Bill will introduce an automatic adjustment mechanism to ensure farmers are always guaranteed at least 70% of the gross Free-On-Board (FOB) price.
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Shared Sacrifice: To lead by example, COCOBOD’s Executive Management has taken a 20% pay cut, and Senior Staff a 10% cut, for the remainder of the season.
4. A New Financing Model
After 32 years, the traditional syndicated loan model is being retired. Starting in the 2026/2027 season, Ghana will transition to a Domestic Cocoa Bond model. This revolving fund aims to provide immediate liquidity, ensuring that Licensed Buying Companies (LBCs) can pay farmers promptly without waiting for external loans.
The Bottom Line
For Mr. Isaac Adongo and the Finance Committee, these reforms are about "fiscal honesty." By removing the burden of road construction and debt from COCOBOD, and mandating that half of all beans stay in Ghana for processing, the government believes it is finally building a cocoa sector that works for the farmer, not just the international buyer.
