President John Dramani Mahama has revealed that Ghana’s cocoa sector is in a serious financial crisis, with the Ghana Cocoa Board (COCOBOD) burdened by a staggering debt of GHC32.5 billion.
Delivering his State of the Nation Address in Parliament on Thursday, February 27, 2025, President Mahama disclosed that GHC9.7 billion of this debt is due for payment by September 2025, posing a major challenge for the cocoa industry and the national economy.
According to the President, COCOBOD’s financial struggles deepened after failing to deliver 333,767 metric tons of cocoa that had already been sold at $2,600 per ton during the 2023/2024 season. This shortfall forced COCOBOD to roll over the contracts into the 2024/2025 season, leading to significant revenue losses for both the institution and Ghanaian cocoa farmers.
“For every ton of cocoa delivered under these rolled-over contracts, COCOBOD and Ghanaian farmers are losing $4,000 in revenue,” President Mahama stated. He further revealed that so far, 210,000 metric tons have been supplied, resulting in a revenue loss of $840 million. By the time all outstanding contracts are fulfilled, an additional $495 million will be lost.
Beyond the immediate financial strain, President Mahama also pointed out that COCOBOD’s commitments to road projects total 21.7 billion cedis. However, only 4.4 billion cedis of this amount is accounted for in the official debt figures. He attributed the financial burden to decisions made in 2019 and 2020 to award over $1 billion in road contracts ahead of the elections.
Expressing deep concern over the crisis, President Mahama emphasized that these financial challenges are having a severe impact on cocoa farmers and the broader economy. He reassured Ghanaians that his administration is committed to resolving these issues, ensuring transparency, and securing fair compensation for hardworking farmers.
With Ghana being one of the world’s largest cocoa producers, the current crisis raises serious concerns about the future of the sector. Stakeholders will be closely watching how the government tackles this financial turmoil in the coming months.