President John Dramani Mahama’s emergency cabinet session on the cocoa sector has resulted in a firm commitment by the government to roll out decisive measures aimed at resolving payment delays to farmers, restructuring cocoa financing, and accelerating domestic value addition.
The outcomes of the high-level meeting were confirmed by the Presidential Spokesperson and Minister of State in charge of Government Communications, Hon. Felix Kwakye Ofosu, following the conclusion of the session.
The emergency meeting was convened against the backdrop of mounting distress in Ghana’s cocoa sector, particularly among farmers who have not been paid for cocoa beans delivered since November 2025.
The crisis has triggered widespread concern about livelihoods, future production, and the long-term sustainability of one of Ghana’s most strategic export industries.
According to Hon. Kwakye Ofosu, cabinet extensively reviewed the financial, structural, and operational challenges confronting the Ghana Cocoa Board and its licensed buying companies. He noted that government has taken clear policy decisions to urgently expedite payments to cocoa farmers and stabilise the sector.
Measures Approved by Cabinet
He announced that the Minister for Finance will hold a media briefing tomorrow, 12th February, 2026, to outline the measures approved by cabinet, including immediate steps to clear arrears owed to farmers and buying companies, the introduction of a new financing model for cocoa purchases, and a significant scale-up in domestic processing of cocoa.
The payment delays that prompted the emergency cabinet intervention stem largely from great financial difficulties at COCOBOD. Over the past season, the board departed from its long-standing syndicated loan arrangement and adopted a trader-financed model under which international buyers were expected to pre-finance cocoa purchases.
That shift coincided with falling global cocoa prices, making many traders unwilling to advance the sums required by COCOBOD. Compounding the situation is the board’s heavy debt burden, estimated at about GH¢32 billion, and its inability in recent years to service cocoa bills, which weakened its credibility with lenders.
COCOBOD also suffered major losses from rollover contracts, having failed to deliver more than 330,000 tonnes of cocoa sold forward in the previous season at prices far below subsequent market levels. These contracts forced sales at historic prices even as global prices surged, resulting in hundreds of millions of dollars in lost revenue.
Despite these pressures, COCOBOD maintained a relatively high farmgate price in a bid to protect farmers’ incomes. However, the mismatch between the farmgate price and what international buyers were prepared to pay for shipped cocoa further constrained cash flows, delaying payments to licensed buying companies and, ultimately, farmers.
The consequences for cocoa farmers have been severe. Farmer groups have reported growing inability to meet basic needs such as school fees, food, and healthcare. Many farmers have also struggled to maintain their farms or service existing bank loans, raising fears of declining production in the coming seasons.
In some cocoa growing areas, particularly in parts of the Ashanti Region, frustration over unpaid beans has reportedly driven threats to sell cocoa lands to illegal miners in exchange for quick cash.
Restoration of Confidence
Cabinet’s backing of faster payments is therefore seen as critical to restoring confidence among farmers and preventing further erosion of the cocoa sector.
Government sources say the measures to be announced by the Finance Minister will prioritise liquidity injections to settle outstanding arrears and ensure that future deliveries are paid for within a predictable timeframe.
Beyond immediate payments, cabinet endorsed a comprehensive overhaul of cocoa financing arrangements. The new model under development is expected to reduce the sector’s exposure to volatile external financing and rebuild lender confidence. It will also seek to address structural weaknesses that have made COCOBOD vulnerable to market shocks and debt accumulation.
A central pillar of the cabinet approved strategy is an unprecedented ramp up in domestic cocoa processing. By increasing the share of cocoa processed locally, government aims to move the sector away from its heavy dependence on raw bean exports and capture greater value within the domestic economy.
Officials believe this approach will help stabilise revenues, create jobs, and strengthen Ghana’s negotiating position in international cocoa markets. The emphasis on domestic processing aligns with President Mahama’s broader economic agenda, which prioritises value addition, industrialisation, and reduced reliance on primary commodity exports.
A long-Term Policy Shift
The cabinet’s endorsement of this direction signals a long-term policy shift in how Ghana manages and monetises its cocoa resources. Politically, the cocoa crisis has attracted intense scrutiny.
The emergency cabinet session reflects the administration’s recognition that the cocoa sector’s challenges are not merely operational but pose broader risks to rural livelihoods, export earnings, and national economic stability.
By moving the issue to the highest level of government, President Mahama has signalled that restoring confidence in the cocoa economy is a priority. As the country awaits the Finance Minister’s briefing, expectations are high that the measures announced will bring tangible relief to farmers and set the cocoa sector on a more sustainable footing.
For many growers who have waited months for payment, the cabinet’s backing of new financing and faster payments offers a cautious but renewed sense of hope that the crisis may finally be turning a corner.
READ ALSO: Industrial Minerals Continue to Underpin Ghana’s Infrastructural Growth – Lands Minister
