Ghana is set to process at least 50 per cent of its cocoa locally under a bold new reform agenda aimed at transforming the country’s cocoa sector and boosting value addition.
The policy shift, spearheaded by the Ghana Cocoa Board (COCOBOD), seeks to reduce the country’s long-standing dependence on raw bean exports and instead prioritise domestic processing to create jobs, increase foreign exchange earnings, and stabilise farmer incomes.
Government Targets Value Addition to Strengthen Economy
For decades, Ghana — the world’s second-largest cocoa producer — has exported the bulk of its cocoa beans in raw form. Under the new reforms, at least half of the country’s annual cocoa output will be processed into semi-finished and finished products such as cocoa liquor, butter, cake and chocolate before export.
Officials say the move is designed to deepen industrialisation within the cocoa value chain and retain more revenue within the local economy.
The initiative forms part of broader structural reforms aimed at revitalising the cocoa industry, which has faced challenges including declining production, climate change impacts, smuggling, and illegal mining activities.
Boost for Local Processing Companies
Industry players have welcomed the announcement, describing it as a long-overdue step to empower domestic processors and attract fresh investment into the sector.
Local cocoa processing companies are expected to expand capacity to meet the new target, while government is also expected to introduce incentives to encourage private sector participation.
Analysts say the reform could significantly reduce Ghana’s exposure to volatile global commodity prices by shifting from raw exports to higher-value finished goods.
Addressing Sector Challenges
The cocoa sector has grappled with persistent issues such as aging farms, inadequate financing, and competition from neighbouring producers. By increasing local processing, authorities believe Ghana can build a more resilient cocoa economy.
The reform agenda is also expected to align with sustainability goals, ensuring that cocoa production and processing adhere to environmental standards and global market requirements.
Economic and Employment Impact
Economists project that increasing local processing to 50 per cent could generate thousands of direct and indirect jobs across manufacturing, logistics and export services.
The policy is further expected to enhance Ghana’s bargaining power in the global cocoa market while positioning the country as a major player not only in bean production but also in chocolate manufacturing.
As implementation begins, stakeholders will be closely watching how government balances export commitments with domestic industrial growth — a shift that could redefine the future of Ghana’s cocoa industry.
