Audio By Carbonatix
Finance Minister Dr Cassiel Ato Forson says the government will introduce a new COCOBOD Bill aimed at modernising the governance and financing of Ghana’s cocoa sector, with a commitment to ensure cocoa farmers receive not less than 70% of the gross Free-on-Board (FOB) price.
Presenting the 2026 Mid-Year Budget Review in Parliament, Dr Forson said the proposed legislation will repeal and replace the Ghana Cocoa Board Act, 1984 (PNDCL 81), which has governed the sector for decades.
"To modernise the governance and financing of the sector, government will submit a new COCOBOD Bill to Parliament to repeal and replace the Ghana Cocoa Board Act, 1984 (PNDCL 81)," he said.
The Finance Minister explained that the new law will introduce a producer pricing mechanism that links cocoa prices paid to farmers with developments in the international cocoa market, exchange rate movements and other relevant market conditions.
"The proposed legislation will introduce a new producer pricing mechanism that aligns producer prices with movements in international cocoa prices, exchange rate developments, and other relevant market conditions."
Dr Forson said the new pricing framework will guarantee cocoa farmers a larger share of earnings from the export value of their produce.
"We will also guarantee cocoa farmers not less than 70 percent of the gross Free-on-Board (FOB) price."
He added that the reforms will also establish a new financing framework for cocoa purchases and related operations, aimed at restoring the long-term financial sustainability and operational efficiency of COCOBOD.
The proposed Bill will further require that at least 50% of cocoa beans produced in Ghana are processed locally to increase value addition and create more economic opportunities within the country.
"The Bill will also ensure that not less than 50 percent of cocoa beans produced in Ghana is processed here in Ghana."
Dr Forson said the reforms will strengthen the financial position of the cocoa sector, improve returns to farmers, promote local processing and position Ghana’s cocoa industry for sustainable growth.
"These reforms will place Ghana's cocoa sector on a stronger financial footing, improve returns to cocoa farmers, ensure value addition, and position the industry for sustainable long-term growth."
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