Majority Caucus Unveils Govt Radical Cocoa Sector Reforms to curb debts and Boost Processing
The Ghanaian government is embarking on a comprehensive overhaul of the cocoa industry to prioritize domestic value addition and restore the financial integrity of the Ghana Cocoa Board (COCOBOD).
Hon. Isaac Adongo, Chairman of Parliament’s Finance Committee, announced these sweeping measures during a high-profile press conference at Parliament House.
The Majority Caucus maintains that these reforms are essential for transforming cocoa into a more resilient pillar of the national economy while ensuring long-term prosperity for rural farming communities.
*Legislative Overhaul and the Strategic Pivot to Value Addition*
At the heart of the reform agenda is a new legislative bill designed to refocus COCOBOD strictly on its core mandate.
This move aims to prevent the board from engaging in non-core activities that have historically drained its resources.
By streamlining governance, the government intends to rebuild investor confidence and improve the sector’s positive equity.
.
Further, the administration is pushing for a significant shift toward higher levels of domestic cocoa processing.
This strategy is expected to catalyze job creation and contribute more robustly to the Gross Domestic Product (GDP) by moving beyond the exportation of raw beans.
*Financial Engineering to Eradicate Legacy Debt*
To address the mounting financial challenges facing the sector, the government has unveiled a bold debt-restructuring plan.
This includes the conversion of GH¢5.8 billion in legacy debt, a move specifically targeted at restoring the financial health of COCOBOD. Additionally,
the central government will now take over the construction of cocoa roads.
By removing this massive infrastructural burden from COCOBOD’s balance sheet, the board will be able to reallocate critical resources back into the direct support of cocoa production and farmer welfare.
*Price Adjustments and the Political Landscape of Farming*
Despite the broader structural improvements, the reform package includes a notable reduction in the farm-gate price of cocoa.
The price per bag has been adjusted from GH¢3,625 to GH¢2,587.
While this change is significant, Hon. Isaac Adongo emphasized that the current administration’s overall support package remains superior to previous regimes.
He reiterated the government’s unwavering commitment to ensuring that farmers receive fair compensation and remain protected by a more “financially resilient and well-governed” system that can withstand global market fluctuations.
As a student of the Ghana School of Law, would you like me to analyze the potential legal implications of the proposed bill that restricts COCOBOD’s non-core activities?
*Source: Felix NYAABA/EXPRESSNEWSGHANA.com*
About Author
