Dr. Nii Moi Thompson, a distinguished economist and former Director General of the National Development Planning Commission (NDPC), has called for a radical overhaul of Ghana’s cocoa sector.

Dr. Thompson urged the Ghana Cocoa Board (COCOBOD) to permit cocoa farmers to sell their products independently, arguing that this move would foster greater autonomy and profitability for the farmers. Dr. Thompson’s primary contention is that cocoa farmers should be granted the freedom to seek their markets, free from COCOBOD’s constraints.

“I think we need to restructure the whole sector [COCOBOD] in such a way that we leave the cocoa farmers alone, get COCOBOD out of the way. Let them [farmers] make their money and pay taxes like anybody else. Who buys what farmers produce? They find markets, so let people do that.”
Dr. Nii Moi Thompson, Economist and former Director General NDPC

Dr. Thompson’s argument hinges on the belief that autonomy will empower farmers, allowing them to reap the full benefits of their labor. By independently negotiating prices and selecting buyers, farmers could potentially secure higher profits and invest in their businesses growth. Dr. Thompson posits that this change would also drive competition and efficiency within the sector.

Concerns about maintaining quality standards in the absence of COCOBOD’s oversight were promptly addressed by Dr. Thompson. He asserted that standards could still be effectively managed, even with a decentralized system. “The issue of standards can all be handled…after 150 years, we should let cocoa go and think of non-cocoa, non-primary commodity sectors,” he argued, suggesting that a shift in focus is long overdue.

Dr. Thompson’s critique extends beyond just the operational aspects of COCOBOD. He lamented Ghana’s continued heavy reliance on cocoa, which he described as a “shame” after nearly 150 years since its introduction.

According to him, this dependence is a stark indicator of the country’s failure to diversify its economy and achieve significant economic development. “We shouldn’t be talking about cocoa. By now, we should be talking about industry, high-tech, and so on,” he lamented.

Economic Reality of Cocoa

“Cocoa now constitutes just 2% of GDP, and your national development strategy is based on a sector that makes up less than 2% of your GDP,” Dr. Thompson noted, underscoring the need for a more robust and diversified economic plan. This, he argues, makes it an inadequate foundation for the country’s national development strategy.

Dr. Thompson further illustrated the limited financial benefits derived from cocoa. “For a country like Ghana that is growing, the average that we get for cocoa loans is $1.5 billion; the highest I have seen is $2 billion. What is that for a population of 31 million?” he questioned, highlighting the inadequacy of such returns for a nation of Ghana’s size and potential.

Dr. Thompson’s recommendations are underpinned by a call for visionary leadership and strategic planning. He criticized the historical reliance on cocoa-syndicated loans, which have become increasingly insignificant.

Dr. Thompson emphasized the need for Ghana to pivot towards value-added exports and strategic industries that can generate substantial revenue and drive sustainable economic growth.

“By now, we should be doing about $10 billion through some exports – value-added, we call them strategic exports in the 40-year national development plan.”
Dr. Nii Moi Thompson, Economist and former Director General NDPC

Dr. Nii Moi Thompson’s call to allow cocoa farmers to sell their products independently is a bold proposal aimed at revamping Ghana’s cocoa sector. His insights highlight the limitations of the current system and underscore the urgent need for economic diversification and strategic planning.

By granting farmers greater autonomy and shifting focus towards value-added industries, Ghana could unlock new avenues for growth and development, ultimately benefiting its economy and its people.