Finance Minister Dr. Cassiel Ato Forson has disclosed that, beginning with the 2026/27 crop season, Cabinet has directed that a minimum of 50% of Ghana’s cocoa beans be processed locally.
This policy shift is anchored on aggressive industrialization, financial restructuring to resolve legacy debts, and a legislative return to COCOBOD’s core mandate.
As part of the directive, the state-owned Cocoa Processing Company (CPC) will be revived as a matter of priority to become the leading processor of cocoa beans.
Stakeholders have indicated their capacity and willingness to process even more than 50% of Ghana’s cocoa output. Consequently, an agreement has been reached for the immediate implementation of this new policy to ensure greater value retention within the country.
To address the indebtedness inherited by the current management of COCOBOD, Cabinet has further directed the Minister for Finance to urgently seek Parliamentary approval to convert part of the legacy debts into equity.
This involves approximately GH¢5 billion in outstanding debts owed to the Ministry of Finance and the Bank of Ghana.
COCOBOD currently owes the Ministry of Finance GH¢3.7 billion, arising from the conversion of non-marketable cocoa bills into a loan, as well as a 10-year loan of GH¢1.38 billion owed to the Bank of Ghana.
Dr. Forson explained that this debt conversion will restore positive equity and boost confidence in both international and local markets.
Ultimately, it will strengthen COCOBOD’s balance sheet, enabling the implementation of a new financing model for cocoa purchases and related operations.
Cabinet also noted that road construction has accounted for a significant part of COCOBOD’s financial difficulties.
Between 2014 and 2024, the organization awarded cocoa road contracts totaling GH¢26.5 billion, with GH¢21.5 billion of those contracts awarded between the 2018/19 and 2020/21 crop years.
Despite an agreement under the 2023 IMF programme to rationalise these commitments from GH¢21.7 billion to GH¢6.9 billion, the previous board and management failed to carry out the exercise.
To prevent future financial distress, the new COCOBOD Bill prohibits the organization from engaging in quasi-fiscal expenditures and non-core activities, in line with an earlier announcement by the Minister for Finance.
