President John Dramani Mahama has scheduled an emergency cabinet session for Wednesday (11 February) to address mounting challenges in Ghana’s cocoa sector, as liquidity shortfalls and delayed payments to farmers threaten to destabilise one of the country’s most important industries.
The Minister in charge of Government Communications, Felix Kwakye Ofosu, announced the meeting in a post on X, describing it as an “emergency cabinet session” to tackle “all issues affecting the cocoa sector”.
The urgent talks come amid growing concern over severe financing gaps that have disrupted payments to cocoa farmers and licensed buying companies (LBCs), raising fears of supply chain breakdowns and falling producer confidence.
New old model
Industry stakeholders say delays in paying farmers and buyers could undermine the 2025/26 crop season and weaken Ghana’s position as the world’s second-largest cocoa producer.
The Licensed Cocoa Buyers Association of Ghana (LICOBAG) has warned that the government must secure emergency funding to purchase an estimated 300,000 tonnes of cocoa beans through to September to prevent a collapse of the purchasing system.
Without immediate liquidity, buyers may struggle to procure cocoa beans from farmers, which could fuel smuggling and reduce official volumes for export.
The Ghana Cocoa Board (COCOBOD), which oversees pricing, purchasing and exports of the commodity, has acknowledged the funding constraints and is reportedly working with the Ministry of Finance to explore alternative financing options. Among the measures under consideration is abandoning the syndicated loan model used to fund cocoa purchases since 1992.
Disgruntled farmers
Farmers have also voiced frustration over producer prices for the new season, saying that the current rates do not adequately reflect rising production costs.
Some warn that unattractive prices, combined with payment delays, could give added incentive to cross-border smuggling to neighbouring countries that offer better returns.
Government officials say the emergency cabinet meeting will bring together ministers, sector experts and senior administrators to craft immediate interventions aimed at restoring confidence in the cocoa value chain.
Expected measures include securing short-term financing, ensuring timely payments to farmers and buyers, and implementing reforms to stabilise the sector.
Cocoa remains a pillar of Ghana’s economy, providing livelihoods for hundreds of thousands of rural households and serving as a critical source of foreign exchange.
The outcome of Wednesday’s meeting is likely to shape the government’s broader strategy to protect the cocoa industry amid rising costs, tighter credit conditions and growing pressure from producers.
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