Ghana, the world’s second-largest cocoa producer after neighbouring Ivory Coast, relies on the crop for a major share of export earnings. Together, the two West African nations supply about half of global cocoa.
However, the sector has been hit hard by two successive weak harvests, caused by diseases like swollen shoot virus and unfavourable weather patterns. At the same time, global cocoa prices have fallen sharply, from peaks around $12,000 per tonne in 2024 to roughly $4,000 now, due to softer demand and expectations of better supply ahead.
Samuel Adimado, president of the Licensed Cocoa Buyers Association of Ghana, told Reuters that debts have built up because the Ghana Cocoa Board (Cocobod) has diverted funds to non-core activities, such as road construction.
This has forced buyers to borrow from banks to pre-finance purchases from farmers. In total, buyers owe banks around 7 billion to 8 billion cedis ($650 million to $750 million), and a further $205 million to $234 million to farmers. “Interest keeps piling up,” he said.
Buyers have delivered about 580,000 metric tonnes of beans to Cocobod this season but are still waiting for full payment, while another 70,000 tonnes remain in the fields.
The recent reduction in the farmgate price, to $3,580 per metric tonne will apply to roughly 100,000 tonnes, as part of efforts to make Ghanaian cocoa more competitive internationally after earlier high prices led to unsold stocks.
The government has responded with measures including the price adjustment in mid-February 2026 and plans for a new domestic cocoa financing scheme, potentially involving cocoa bonds, to improve cash flow. Buyers are hopeful this will ease the strain.
The banking sector is also feeling the impact. The Ghana Association of Banks confirmed exposure to these debts, with some loans restructured and potential losses on the horizon.
CEO John Awuah declined to give a precise total but noted that the system remains resilient, though it needs careful oversight to stay aligned with Ghana’s ongoing IMF programme.
This comes against the backdrop of the 2023 Domestic Debt Exchange Programme (DDEP), which converted many short-term instruments,including Cocobod’s cocoa bills, into longer-dated bonds at lower rates, eroding bank capital and contributing to broader sector challenges.
While the cocoa crisis highlights vulnerabilities in Ghana’s key export industry, the government’s steps aim to stabilise the sector and support the hundreds of thousands of smallholder farmers who depend on it.
The situation shows the need for tighter financial discipline at Cocobod and better alignment with global market realities across West Africa’s cocoa belt.
