The multibillion-dollar cocoa sector in Ghana is at risk of collapse within the next decade if the government fails to stamp out illegal mining, according to a new report.
The Institute of Economic Research and Public Policy (IERPP) warns that widespread destruction of cocoa farms by galamsey operators threatens the livelihoods of more than 800,000 smallholder farmers and millions of other workers who depend on the industry.
“Vast acreages of cocoa farms are being taken over by illegal miners. Some farmers are cutting down their own cocoa trees for galamsey,” said Frank Bannor, a development economist and senior research fellow at IERPP and contributor to the new report.
The report notes that cocoa accounts for roughly 15% of Ghana’s GDP and remains the country’s second-largest source of foreign exchange earnings after minerals, generating more than $2 billion in 2023.
Ghana is the world’s second-largest producer of cocoa, supplying about one-fifth of global demand.
But the industry faces mounting threats, from disease outbreaks and smuggling to the far more devastating impact of illegal mining.
Farmland, rivers and forests are increasingly degraded as miners dig for gold, often using harmful chemicals that pollute water bodies and afflict surrounding communities.
IERPP warns that if the destruction continues unchecked, Ghana could lose not only a major driver of its economy but also thousands of jobs at the Ghana Cocoa Board (COCOBOD) and across cocoa-related businesses.
Beyond the economic risks, Dr Bannor stressed the health costs.
“We must not lose sight of the hazards associated with illegal mining and how much the state spends on the health of affected communities,” he said.
The IERPP is urging President John Mahama’s government to intensify the fight against illegal mining and rally all political parties to support the effort.
The think tank says safeguarding the cocoa sector is critical to sustaining jobs, boosting value-added processing and protecting one of Ghana’s most vital national assets.
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