President John Dramani Mahama has announced plans to reduce Ghana’s export of raw cocoa beans by promoting more local processing.
He said that over the next four years, his government will focus on adding value by producing cocoa liquor, cocoa powder, cocoa butter, and other cocoa products to boost the economy and create jobs.
Speaking at the Africa CEO Forum in Abidjan, Côte d’Ivoire, Mahama said Ghana produces about 40 to 50% of the world’s cocoa, and he believes the country must do more to process cocoa locally rather than just exporting raw beans.
He added that his government will work to reduce the amount of raw cocoa exported and instead focus on producing finished products that contribute more to the local economy.
“I’m a believer in producing more locally and adding value to cocoa rather than just exporting the raw beans. So over the next four years, we are going to see how we can increasingly reduce the amount of raw beans that we export and instead produce cocoa liquor, cocoa powder, cocoa butter, and all the other products that come from cocoa,” he said.
President John Mahama, speaking at the forum, said Ghana is more diversified in its raw material exports compared to many other countries.
He noted that the country’s major exports include gold, oil and gas, with cocoa being the biggest export item.
“Even in the export of primary products or raw materials, we are a bit more diversified than other countries because our major exports are gold, followed by oil and gas, and then cocoa. Cocoa used to be the biggest export item for Ghana. I think it’s about number three now because of a loss in production due to climate change, but it’s building back up.”
He explained that although oil prices have dropped, Ghana is now benefiting more from gas.
According to him, gas is more valuable to the country because it is used to produce electricity at a lower cost than using crude oil.
“And so, while oil has gone down, we benefit from the gas. I think the gas is more beneficial to Ghana than the oil because we are using it to produce power, and it allows us to do so at a comparatively lower cost than if we were using crude oil alone. Fortunately, the West African Power Pool is operational, so any excess power we generate can be exported to Burkina Faso and other countries. That’s a good thing.”
President Mahama also said that during uncertain times in the global market, gold prices usually go up.
He added that gold can be found across Ghana, from the south to the north, and that production has increased. With the current good prices, Ghana is earning a lot from its gold exports.
“But in all the unpredictability of the world, and when the world gets unpredictable, one commodity that increases in price is gold. There is gold everywhere in Ghana, from the South to the North. In the past, when we were young, after a thunderstorm, you could go out and pick little specks of gold in the gold-producing areas of Ghana. Gold production has increased, the price is good, and so Ghana is earning a lot more from gold.”
