The International Monetary Fund (IMF) has identified 2024 as a financially challenging year for the Ghana Cocoa Board (COCOBOD), citing weak cocoa production as a significant factor undermining the institution’s ability to capitalize on record-high global cocoa prices.
In its latest staff report, the IMF highlighted that reduced production levels during the 2023/2024 cocoa season limited COCOBOD’s capacity to fulfill obligations under forward sales contracts, further straining its financial position.
According to data from the Ghana Statistical Service, the cocoa sector experienced a sharp 26% decline in output during Q3 of 2024, marking the fifth consecutive quarter of contraction. The decline exacerbated COCOBOD’s financial challenges, despite a 50% increase in the 2024/2025 farmgate price for cocoa aimed at curbing smuggling and discouraging the conversion of cocoa farmlands to illegal mining sites.
The IMF report also pointed out that Ghana missed an opportunity to fully benefit from rising international cocoa prices due to forward sales agreements that locked the country into lower prices before the recent global surge.
In response to these challenges, the government has initiated measures to stabilize the sector, including establishing a dedicated cocoa desk at the Ministry of Finance. This initiative is part of a broader strategy to restore COCOBOD’s financial sustainability and support long-term growth in the cocoa industry.
The report underscores the critical need for robust reforms to strengthen Ghana’s cocoa production capabilities and ensure the sector’s resilience amid fluctuating global market dynamics.
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