COCOBOD’s rollover contracts cost Ghana nearly $1bn – Otokunor
The Deputy General Secretary of the National Democratic Congress (NDC), Peter Boamah Otokunor, has alleged that rollover contracts entered into by the Ghana Cocoa Board (COCOBOD) have cost the country nearly $1 billion in lost revenue.
According to him, the contracts, which involved rolling over cocoa supply agreements signed in previous seasons, were poorly structured and executed, leading to significant financial losses for Ghana.
Speaking during a media engagement, Mr. Otokunor explained that the rollover arrangements forced COCOBOD to honour contracts that were originally negotiated at lower prices even when global cocoa prices had risen sharply. This meant that Ghana continued to supply cocoa at prices far below prevailing market rates.
He said the situation deprived the country of substantial income that could have been used to support cocoa farmers and strengthen the local cocoa industry.
Mr. Otokunor noted that the global cocoa market experienced significant price increases in recent seasons due to supply shortages and adverse weather conditions affecting major producing countries. However, Ghana was unable to fully benefit from these higher prices because of the existing rollover commitments.
He further argued that the financial impact of these agreements has placed additional pressure on COCOBOD’s finances and contributed to broader challenges within the cocoa sector.
The NDC official called for greater transparency in the management of cocoa forward sales and contract negotiations to prevent similar situations in the future.
He stressed that cocoa remains one of Ghana’s most important export commodities and must be managed in a way that maximizes returns for both the state and farmers.
Mr. Otokunor also urged authorities to thoroughly review the circumstances surrounding the rollover contracts and ensure accountability where necessary, adding that lessons must be learned to protect the country’s economic interests in the global cocoa market.
