The Minister for Finance, Dr Cassiel Ato Forson, has announced a sweeping set of reforms targeting what he described as “gross mismanagement” in the cocoa sector over the past eight years.

According to the Finance Minister, these measures are aimed at guaranteeing fair prices for farmers, restoring financial stability, and securing the long-term sustainability of the industry.

“A careful review of the cocoa sector over the last eight years revealed gross mismanagement, which requires immediate and comprehensive reforms to address the challenges in the sector,” Dr Forson said.

Addressing the press at the Finance Ministry on Thursday, February 12, Dr Forson revealed that the Cabinet had approved far-reaching changes to reposition the sector and protect cocoa farmers.

The reforms include:
1. Immediate repayment of unpaid cocoa farmers: Cabinet has directed the Ghana Cocoa Board (COCOBOD) to commence immediate repayment of all cocoa farmers affected by delayed payments.

2. Automatic price adjustment mechanism: A new COCOBOD Bill will be presented to Parliament to introduce an automatic adjustment of producer prices in line with movements in world market prices, exchange rates, and other key economic variables.

3. Guaranteed minimum 70% of gross FOB price to farmers: The proposed legislation will guarantee that cocoa farmers receive not less than 70% of the gross Free-On-Board (FOB) price.

4. Introduction of a new financing model (effective 2026/2027 crop season): The current buyer-dependent financing structure, which replaced the syndicated loan model, will be scrapped. The government will introduce a new financing framework to ensure sustainability.

5. Issuance of domestic cocoa bonds: Under the new model, domestic cocoa bonds will be issued to raise funds for cocoa purchases. The proceeds will be repaid within each crop year, creating a revolving fund for COCOBOD operations.

6. Revival of indigenous Licensed Buying Companies (LBCs): The new financing model is expected to bring indigenous LBCs back into operation after many were pushed out under the existing structure.

7. Revival of Produce Buying Company (PBC): The state-owned PBC will be revived with immediate effect to resume full operations and become the leading licensed buying company in the sector.

8. Immediate allocation of the remaining 2025/2026 crop beans for domestic processing: Cabinet has directed that the remainder of the cocoa beans for the current crop year be allocated for local processing.

9. Minimum 50% local processing from the 2026/2027 crop season: Beginning next crop season, at least 50% of Ghana’s cocoa beans will be processed locally. This provision will be captured in the new COCOBOD Bill.

10. Revival of Cocoa Processing Company (CPC): The state-owned CPC will be revived as a priority to become the leading processor of Ghana’s cocoa beans.

Dr Forson explained that the previous syndicated loan model required COCOBOD to sell forward large volumes of raw beans as collateral, limiting Ghana’s ability to optimise global prices and expand local processing capacity.

He also revealed that he and the Minister for Trade, Agribusiness and Industry have met with domestic cocoa processors, who have indicated their readiness to process more than 50 per cent of Ghana’s cocoa output.

“An agreement has been reached on the immediate implementation of this policy,” he stated.

The reforms represent one of the most significant structural overhauls of Ghana’s cocoa sector in decades, with the government positioning the changes as a decisive intervention to protect farmers’ incomes, promote value addition, and restore financial discipline within COCOBOD.