Government has announced plans to absorb an estimated $150 million in losses incurred by the Ghana Cocoa Board (COCOBOD), following a Cabinet directive authorising the immediate purchase of cocoa to stabilise the sector.
In a statement issued by the Finance Ministry, authorities confirmed that Cabinet had approved urgent measures to support COCOBOD in addressing financial shortfalls linked to pricing gaps and supply challenges within the cocoa industry.
The Ministry explained that the decision forms part of broader efforts to protect cocoa farmers, sustain Ghana’s position in the global cocoa market, and ensure uninterrupted purchasing operations during the ongoing crop season.
COCOBOD has reportedly been grappling with losses stemming from forward sales contracts and market price fluctuations, which have created a funding gap estimated at $150 million. The government’s intervention is intended to cushion the Board and prevent disruptions in cocoa purchases at the farmgate level.
Officials stressed that the immediate cocoa purchases are necessary to maintain confidence among farmers and licensed buying companies, while safeguarding export commitments.
“The directive from Cabinet ensures that cocoa purchases continue without delay, while government steps in to absorb the associated losses to protect the broader economy,” the Finance Ministry noted.
Industry analysts say the move is aimed at averting potential supply shocks and stabilising the domestic cocoa market, particularly at a time when global prices remain volatile.
The intervention is also expected to reassure farmers that government remains committed to supporting the cocoa sector, which remains one of Ghana’s key foreign exchange earners and a major contributor to rural livelihoods.
While the absorption of the losses may add short-term pressure to public finances, economic observers argue that stabilising the cocoa sector is critical to preserving export revenues and maintaining macroeconomic stability.
Government has indicated that further structural reforms within COCOBOD will be pursued to enhance efficiency, reduce future financial risks and strengthen oversight mechanisms.
The Finance Ministry reiterated that protecting the cocoa industry remains a top priority, describing the sector as central to economic recovery and long-term growth.
