The World Bank’s latest Ghana Economic Update has raised concerns over the financial stability of the Ghana Cocoa Board (COCOBOD), warning that persistent operational and fiscal challenges could undermine one of the country’s most vital export industries.

According to the report, despite record-high global cocoa prices, Ghana’s cocoa production remains weak, while COCOBOD owes significant amounts to its suppliers. The World Bank noted that the agency’s involvement in activities beyond its core mandate known as quasi-fiscal operations has further heightened financial risks.

The report cautioned that these challenges, if left unresolved, could have wider implications for Ghana’s economy, given cocoa’s critical role as a major source of foreign exchange and rural incomes.

The World Bank stressed the need for stronger oversight and accountability in both the agricultural and energy sectors to help reduce fiscal risks and ensure long-term stability. It also called for COCOBOD to focus squarely on its primary business of sustaining cocoa production, while streamlining its operations to improve efficiency and financial health.

Cocoa remains Ghana’s second-largest export earner after gold, contributing billions of dollars annually. With global prices at multi-decade highs, analysts say the country must urgently address production and financing bottlenecks to fully seize the opportunity presented by favourable market conditions.