Finance Minister Dr. Cassiel Ato Forson will address the nation on Thursday, February 12, 2026, at 11:00 a.m. to outline decisive measures aimed at rescuing Ghana’s cocoa sector from a crisis characterized by debt, payment delays, and the collapse of traditional financing structures.
Following an emergency Cabinet session on Wednesday, February 11, 2026, the government approved sweeping reforms to expedite payments to cocoa farmers and introduce far reaching changes aimed at restoring stability and confidence in an industry that remains central to Ghana’s economy.
The briefing comes as farmers threaten demonstrations over unpaid beans, with thousands across several producing regions reporting outstanding payments for cocoa supplied since late 2025. The delays are affecting livelihoods, access to healthcare, and ability to pay school fees, creating mounting pressure on the government to deliver concrete solutions.
Ghana’s cocoa sector, once described as the country’s gold, has seen production plummet from peak levels of over 1 million metric tonnes in the 2020 to 2021 season to approximately 600,000 metric tonnes in the 2024 to 2025 season. The decline resulted from aging trees, the devastating cocoa swollen shoot virus disease (CSSVD), and encroachment of illegal mining activities on fertile cocoa lands.
The traditional syndicated loan arrangement that Ghana relied on since 1992 collapsed for the 2024 to 2025 season after COCOBOD failed to deliver over 333,767 metric tonnes of promised cocoa during the 2023 to 2024 season, the first such default in the institution’s history.
Dr. Randy Abbey, Chief Executive Officer of COCOBOD, disclosed on Monday, February 9, 2026, that the cocoa had been sold to buyers at an average price of about 2,600 United States dollars per tonne but could not be delivered as agreed, resulting in the contracts being rolled over into subsequent seasons at the same prices. This occurred when global cocoa prices surged to between 9,000 United States dollars and 12,000 United States dollars per tonne, prompting COCOBOD to honor older contracts at significantly higher prices, resulting in heavy losses.
International banks, spooked by the default and the restructuring of COCOBOD’s domestic debt, withdrew from providing syndicated financing. When COCOBOD issued a request for proposals for the 2024 to 2025 season, banks did not respond because they did not believe the cocoa could be supplied, according to Dr. Abbey. The outstanding contracts were rolled over again at the original price of 2,600 United States dollars per tonne.
Former COCOBOD Chief Executive Officer Joseph Boahen Aidoo announced in August 2024 that the board would not raise the annual syndicated loan for the 2024 to 2025 crop season, marking the first time in 32 years that COCOBOD would attempt to self-finance its operations. The decision was partly driven by high interest rates exceeding 8 percent, up from as low as 1.5 percent in 2016.
However, the self-financing experiment has left farmers unpaid and exposed fundamental weaknesses in Ghana’s cocoa production system. Without syndicated loan funding to provide upfront capital, Licensed Buying Companies (LBCs) have struggled to mobilize funds to purchase cocoa, creating severe liquidity constraints throughout the value chain.
The Minority Caucus in Parliament stated that COCOBOD owes LBCs more than 10 billion Ghana cedis for cocoa already delivered to the board, leaving the companies financially constrained and unable to pay farmers promptly. Samuel Adimado, President of the Licensed Cocoa Buyers Association, disclosed that some members have gone unpaid for two consecutive seasons, with LBCs owed approximately 185 million United States dollars.
Dr. Abbey confirmed that COCOBOD was burdened with total debt of 32.9 billion Ghana cedis as at the end of 2024, alongside a negative equity position of approximately 3.8 billion Ghana cedis, meaning the organization’s liabilities exceeded its assets. The debt burden includes legacy debts, uncrystallized contract obligations, procurement lapses, jute sack purchases, cocoa roads development, and accumulated costs for insecticides and fertilizers.
The current market conditions have created additional pressure on COCOBOD’s finances. Global cocoa prices have fallen to approximately 4,200 United States dollars per tonne as of February 6, 2026, representing a 57 percent decline from the same period last year. Meanwhile, Ghana pays farmers the equivalent of about 80,640 Ghana cedis per tonne, based on pricing decisions taken when exchange rates and global prices were significantly higher.
Ghana’s total production and export costs stand at about 6,300 United States dollars per tonne, creating a significant pricing gap between production costs and market prices. This means COCOBOD is effectively losing money on every tonne of cocoa sold under current conditions.
The recent appreciation of the Ghana Cedi has compounded the challenges. A stronger cedi means the dollar value of cocoa translates into fewer cedis at home, reducing the revenue available to cover local currency costs and farmer payments. The global price has fallen below the high farmgate price Ghana promised its farmers, trapping COCOBOD between commitments to farmers and market realities.
Dr. Abbey stated on Thursday, February 6, 2026, that although COCOBOD has sold more than 530,000 metric tonnes this season, about 50,000 metric tonnes remain at the ports without buyers, highlighting weak global demand and pricing pressures.
Jerome Kwaku Sam, Head of Corporate Communications at COCOBOD, said the board had released billions of cedis to LBCs since late 2025, with more than 6 billion Ghana cedis paid in November, more than 5 billion Ghana cedis in December, another 6 billion Ghana cedis in January, and over 620 million Ghana cedis in February 2026 to enable LBCs to clear outstanding obligations to farmers. However, the payments have not kept pace with deliveries, leaving significant arrears outstanding.
The Finance Minister’s briefing on Thursday is expected to address three key pillars. First, a new financing model moving away from foreign banks toward domestic funding or buyer pre-financing arrangements to end reliance on syndicated loans. Second, a plan to clear the backlog of arrears that has led to threats of national demonstrations by farmers. Third, strategies to expand domestic processing capacity to stop exporting raw beans and start capturing value from chocolate and cocoa butter production.
Industry analysts note that the collapse of the syndicated loan system represents more than a financing challenge. It reflects fundamental concerns about Ghana’s ability to reliably deliver cocoa under forward contracts, raising questions about production capacity, governance structures, and long term sector sustainability.
The government’s reform package will need to address structural inefficiencies, strengthen financial management, enhance transparency within COCOBOD’s operations, and create sustainable mechanisms for farmer payments while rebuilding credibility with international buyers and financial institutions.
The cocoa sector remains a key pillar of Ghana’s economy, contributing substantially to export earnings, rural employment, and foreign exchange inflows. The sector employs approximately 800,000 farm families in 10 out of the country’s 16 administrative regions. In the 2024 to 2025 season, despite being truncated and ending early on July 31, 2025, Ghana’s global exports of cocoa beans, cocoa paste, cocoa butter, and cocoa powder surpassed 3.37 billion United States dollars, up 119 percent compared to the 2023 to 2024 period’s 1.54 billion United States dollars.
However, the sector faces mounting challenges from climate change related disasters, swollen shoot virus disease affecting more than 90,000 hectares of cocoa farms, aging tree stock, illegal mining encroachment, and smuggling activities driven by price differentials with neighboring countries.
The government under President John Dramani Mahama has reintroduced the Free Cocoa Fertilizer Programme for the 2025 to 2026 season, providing farmers with free fertilizers in both liquid and granular form, along with free insecticides, spraying machines, fungicides, and flower inducers.
As Dr. Forson prepares to outline the government’s intervention on Thursday, the nation awaits clarity on whether these measures offer a permanent cure to the structural challenges facing the cocoa industry or represent another temporary bandage on deep wounds that require fundamental transformation.
