Government is seeking urgent parliamentary approval to restructure billions of cedis in legacy debts inherited by the current management of the Ghana Cocoa Board (COCOBOD), as part of sweeping measures to restore financial stability in the cocoa sector.

Finance Minister, Dr Cassiel Ato Forson, who announced this on Thursday, February 12, said that Cabinet has directed him to secure approval to convert approximately GH¢5.8 billion in legacy debt owed to the Ministry of Finance and the Bank of Ghana (BoG) into more sustainable financial instruments.

He said that COCOBOD currently owes the Ministry of Finance GH¢3.7 billion, arising from the conversion of non-marketable cocoa bills into a loan, while the BoG is owed GH¢1.38 billion under a 10-year facility.

“The debt conversion will restore positive equity and boost confidence in both the international and local markets to support the operations of COCOBOD,” Dr Forson said, adding that the move would strengthen the Board’s balance sheet and enable it to implement the newly announced financing reforms.

Road debts to be transferred

The Finance Minister noted that Cabinet has also directed the immediate transfer of GH¢4.35 billion in cocoa road liabilities from COCOBOD to the Ministry of Roads and Highways and the Ministry of Finance.

According to him, between 2014 and 2024, COCOBOD awarded cocoa road contracts valued at GH¢26.5 billion, with GH¢21.5 billion of those contracts awarded between 2018 and 2021.

Despite a 2023 agreement under the IMF programme to rationalise COCOBOD’s road commitments from GH¢21.7 billion to GH¢6.9 billion, the previous management failed to carry out the exercise.

Dr Forson said the rationalisation has now been completed under the supervision of the Finance Ministry and the Roads Ministry, reducing total exposure from GH¢21.7 billion to GH¢4.35 billion.

“Cabinet has directed that the liabilities of the GH¢4.35 billion be transferred to the Ministry of Roads and the Ministry of Finance for payment,” he stated.

He noted that cocoa road construction accounts for a significant portion of COCOBOD’s current financial distress, and disclosed that a new COCOBOD Bill to be presented to Parliament will prohibit quasi-fiscal and non-core expenditures going forward, with sanctions for breaches.

In line with this shift, he recalled that the 2026 Budget announced a $500 million World Bank facility secured by the government to construct agricultural roads, including cocoa roads, effectively removing that responsibility from COCOBOD.

Forensic audit ordered

To ensure accountability, the Finance Minister said Cabinet has directed the Attorney-General to commission a concurrent forensic audit and criminal investigation into COCOBOD’s activities over the past eight years.

The move, according to the Minister, is intended to strengthen transparency and restore confidence in the management of the cocoa sector.

New producer price announced

The reforms come against the backdrop of falling global cocoa prices, which have declined from an average of $7,200 per tonne to $4,100 per tonne, creating liquidity challenges for the sector.

Following an emergency meeting of the Producer Price Review Committee (PPRC), chaired by Dr Forson, a new producer price has been approved.

“In order to cushion the farmer, the PPRC has recommended that the farmer be paid 90% of the achieved gross FOB of $4,200 per ton,” he announced.

Effective Thursday, February 12, 2026, the new producer price for the remainder of the 2025/2026 crop season is GH¢41,392 per tonne, equivalent to GH¢2,587 per bag.

“This measure has become necessary to reflect the reality of the world market price of cocoa, ensure the injection of immediate liquidity for expedited payment of farmers, and guarantee the sustainability of our cocoa sector,” Dr Forson stated.