Ghana’s cocoa sector, long regarded as a pillar of the country’s foreign exchange earnings and economic stability, is facing imminent risks unless immediate and sustained investments are made to enhance large-scale production.

This cautionary message was delivered by the Netherlands Ambassador to Ghana, Jeroen Verheul, during a high-level public-private dialogue in Accra focused on Ghana’s preparedness for the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD).

Ambassador Verheul highlighted Ghana’s slipping global competitiveness in cocoa production, stressing that structural weaknesses in the sector have not been adequately addressed over the years. He warned that if current trends of declining productivity persist, Ghana could fall behind emerging cocoa producers such as Ecuador and Brazil.

“If production is going down as it is going down right now, then that means there is less export of cocoa and less foreign exchange earned by farmers and less foreign exchange earned by the economy.”
Ambassador Verheul

His concerns draw attention to the broader macroeconomic risks associated with reduced cocoa exports, a vital source of foreign currency for Ghana. As cocoa remains one of the top foreign exchange earners, any downturn in production could severely impact the country’s ability to finance imports, stabilize the cedi, and meet external obligations.

Sustainability Compliance a Game-Changer

A key issue discussed at the dialogue was the need for Ghana to comply with the European Union’s Corporate Sustainability Due Diligence Directive. This regulation will require companies importing cocoa into the EU to demonstrate that their supply chains adhere to strict sustainability standards, including responsible sourcing, environmental protection, and human rights compliance.

Ambassador Verheul emphasized that meeting these standards—while also scaling up productivity—will be crucial to securing Ghana’s place in the global cocoa market.

“So, it’s a threat to the economy if production is going down. There is an imperative for the Ghana economy to maintain the cocoa sector, to invest in it, to make it more productive, to make it more competitive.”
Ambassador Verheul

In response to these looming challenges, the International Trade Centre (ITC) has rolled out targeted initiatives aimed at strengthening Ghana’s cocoa value chain. Larry Attipoe, the National Coordinator for the Centre’s value chain programmes in Ghana, explained that the ITC is working to equip local stakeholders with the information and tools needed to align with international standards.

“We bring information. What does it take you to produce to meet international demands [and] meet all the specifications,” Attipoe said, underscoring the importance of knowledge transfer in building a resilient and compliant cocoa sector.

The ITC’s efforts are expected to support producers in adopting best practices, improving traceability, and ensuring that Ghanaian cocoa is not rejected in lucrative export markets due to non-compliance with emerging global norms.

The Call for a Cocoa Sector Reset

The collective message from stakeholders at the dialogue is clear: Ghana’s cocoa industry needs a reset. This means rethinking existing policies, investing in modern large-scale farming techniques, and ensuring that smallholder farmers are not left behind in the transition.

Without immediate interventions, the sector could face both short-term losses in revenue and long-term structural decline. Given cocoa’s centrality to Ghana’s economy, such an outcome would have ripple effects across employment, trade, and rural livelihoods.

As Ambassador Verheul rightly pointed out, the risks extend far beyond agriculture. “There is an imperative,” he noted, “for the Ghana economy to maintain the cocoa sector,” a sentiment that reflects the urgency of the moment for policymakers, investors, and industry players alike.

Ghana’s cocoa industry is at a critical juncture. To safeguard its future, the country must act decisively to address productivity challenges, comply with evolving international standards, and unlock the full potential of its value chain. With coordinated efforts from government, development partners like the ITC, and private stakeholders, Ghana can retain its leadership in the global cocoa market—and continue to reap the economic rewards of its prized export crop.