President John Dramani Mahama
President John Dramani Mahama has expressed concern over the state of Ghana’s cocoa sector, citing its high debt levels as a major challenge to growth and a burden on farmers.
Delivering the State of the Nation Address on February 27, 2025, he stated, “Ghana Cocoa Board, the hope of cocoa farmers is also highly indebted. Its balance sheet indicates a total debt of GH¢32.5 billion, of which GH¢9.7 billion is due for payment by the end of September 2025.”
President Mahama blamed COCOBOD for causing financial losses to Ghanaian farmers through certain contractual agreements.
“In the 2023/2024 crop season, COCOBOD failed to supply 333,767 tonnes of cocoa, which had been sold at US$2,600 per tonne. As a result, the then management of COCOBOD rolled over these contracts into the 2024/2025 cocoa season.
“This means that for every tonne of cocoa delivered this year under these rolled-over contracts, COCOBOD and the Ghanaian farmer will lose US$4,000 in revenue.”
He further revealed that COCOBOD has so far supplied 210,000 tonnes under the rolled-over contracts, resulting in a revenue loss of US$840 million for both COCOBOD and Ghanaian farmers.
“COCOBOD and the Ghanaian farmer will lose another US$495 million when the Board completes the supply of the remaining rolled-over contracts.
Additionally, cocoa road commitments alone amount to GH¢21.7 billion, of which only GH¢4.4 billion is included in the total debt of GH¢32.5 billion,” he added.
The president further explained that much of COCOBOD’s debt stemmed from decisions made in 2019 and 2020 to award road contracts worth over US$1 billion ahead of the election.
SSD/MA
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