The Ghana Cocoa Board (COCOBOD) has officially responded to a press release issued by the Minority Caucus in Parliament on August 21, 2024, which it described as riddled with “falsehoods, inaccuracies, and misrepresentations” concerning the current state of Ghana’s cocoa sector and COCOBOD’s strategic financial decisions.

The Board’s statement strongly refutes the claims made by the Minority, asserting that their allegations are unfounded and misleading. One of the key assertions made by the Minority Caucus is that COCOBOD was allegedly “chased away” from international financial markets after failing to secure syndicated loans, a vital source of funding for the cocoa industry.

The Minority further alleged that this was indicative of a lack of confidence in COCOBOD’s creditworthiness by international financial institutions.

COCOBOD, however, vehemently denied these claims, labeling them as “complete lies.” The Board clarifies that syndicated banks had indeed submitted term sheets in response to a Request for Proposals (RFP) issued by COCOBOD.

The Board emphasized that it continues to engage in discussions with financial institutions as part of its commitment to fulfilling existing contracts through syndicated processes.

“The assertion that COCOBOD was ‘chased away’ from the market is entirely false. We remain engaged with our financial partners and have not encountered any indications of diminished confidence in our creditworthiness.”
Ghana Cocoa Board (COCOBOD)

COCOBOD also addressed the Minority’s criticisms regarding the Board’s decision to explore non-syndicated funding options.

Board explained that this decision is part of a broader strategy aimed at diversifying its sources of funding, making the organization more self-financing and sustainable in the medium to long term.

“This strategic shift is about creating long-term value and sustainability for our farmers and the national economy. It is not, as the Minority suggests, a ‘face-saving’ measure due to financial difficulties,” COCOBOD asserted.

Financial Performance and Profitability

The Minority Caucus further claimed that COCOBOD has been operating at a loss, citing an alleged loss of GHS4.2 billion in 2023. COCOBOD refuted this claim, presenting audited financial statements by Ernst & Young (EY), which showed a profit of GHS2.3 billion for the 2022/2023 crop season.

This marked a significant turnaround from the previous year, which COCOBOD attributed to strategic initiatives such as cost-cutting measures, improved operational efficiency, and targeted investments.

“The notion that COCOBOD is continuously losing money is highly uninformed. Our financial performance in the 2022/2023 crop season demonstrates the effectiveness of the strategic initiatives we have implemented.”
Ghana Cocoa Board (COCOBOD)

In response to the Minority’s assertion that cocoa production has consistently declined under the current management, COCOBOD pointed to the record-breaking cocoa production volume of 1.045 million metric tonnes achieved during the 2020/2021 crop season.

This historic achievement, according to the Board, was the result of effective management practices, improved agronomic practices, and enhanced support for farmers.

While acknowledging that recent production levels have been challenged by structural issues such as adverse weather conditions, particularly the severe impact of last year’s El Niño, COCOBOD emphasized that it has implemented significant interventions and mitigation measures to counter these effects.

“The Minority’s claims ignore the structural challenges we have faced, such as adverse weather and the impact of the Cocoa Swollen Shoot Virus Disease (CSSVD).
“Despite these challenges, we have made significant progress in securing the future of Ghana’s cocoa industry.”
Ghana Cocoa Board (COCOBOD)

COCOBOD reiterated the government’s commitment to the cocoa sector, citing substantial investments in road infrastructure in cocoa-growing areas, provision of subsidized fertilizers and pesticides to farmers, and the ongoing cocoa rehabilitation programme.

These efforts, according to the Board, are aimed at ensuring the long-term sustainability of the cocoa industry and improving the livelihoods of cocoa farmers across the country.

“The claim that the Government has ‘destroyed’ the cocoa sector is baseless. It fails to recognize the complexities of the global cocoa industry and the proactive steps being taken to ensure its long-term sustainability.”
Ghana Cocoa Board (COCOBOD)

COCOBOD urged the public to disregard the Minority’s press release, which it described as an attempt to politicize a strategic and forward-thinking policy decision. The Board reaffirmed its focus on sustaining and growing the cocoa industry, and called on all stakeholders, including members of the Minority, to engage in constructive dialogue and collaboration to support the continued development of Ghana’s cocoa sector.