Business
These are the 17 Reforms in Ghana’s Cocoa Sector Announced by the Minister Yesterday
Yesterday, Thursday, February 12, 2026, Finance Minister Dr. Cassiel Ato Forson stood before the nation and did something unprecedented: he named the rot, itemized the failures, and then—piece by piece—laid out a rescue plan for Ghana’s battered cocoa sector.
With thousands of farmers unpaid since November 2025, 50,000 metric tonnes of cocoa stranded at port, and COCOBOD buried under GH¢5.8 billion in legacy debt, the emergency Cabinet meeting on February 11 that preceded his press conference wasn’t a policy retreat. It was a rescue mission.
Here are the 17 reforms the Minister announced—and what they actually mean for the farmer, the sector, and the future of Ghanaian cocoa.
1. Immediate Payment to All Affected Cocoa Farmers
“Cabinet has accordingly directed the Ghana Cocoa Board to commence immediate payment of all affected cocoa farmers.”
No committees. No feasibility studies. No “further consultations.” The directive is active. COCOBOD has been ordered to pay—now. Farmers who haven’t seen a cedi since November 2025 are first in line.
2. New COCOBOD Bill to Automate Producer Price Adjustments
The current system allows a CEO to decide what a farmer earns. That ends.
The incoming Cocoa Board Bill will legislate automatic price adjustments tied to three variables: world market price, exchange rate, and other key indicators. No more discretion. No more negotiation. The formula becomes law.
3. 70% Minimum FOB Guarantee—Locked in Legislation
This is the headline. Cabinet has approved a minimum 70% of gross FOB price to be paid to the cocoa farmer.
Not a promise. Not a target. A floor, written into law. When global prices rise, the farmer’s income rises with it—automatically, immediately, and without political intervention.
4. 90% Interim Relief for the Remainder of 2025/2026
Because reforms take time but farmers eat daily, the Producer Price Review Committee met yesterday afternoon ahead of the presser and approved an emergency 90% of achieved gross FOB for the rest of this crop season.
At $4,200 per ton and the prevailing exchange rate, that translates to GH¢41,392 per ton and GH¢2,587 per bag—effective immediately.
5. A New Financing Model: Cocoa Bonds, Not Syndicated Loans
The 32-year-old syndicated loan model is dead. In its place: domestic cocoa bonds.
COCOBOD will issue bonds to raise a revolving fund for cocoa purchases, repayable within each crop year. The goal is independence from buyer financing and the predatory contract terms that came with it.
6. Revival of PBC (Produce Buying Company) as Market Leader
State-owned PBC has been “completely thrown out of business” under the old model. Cabinet has ordered its immediate revival to become the leading Licensed Buying Company in Ghana.
This is not symbolism. This is the state re-entering the buying space to stabilize competition and protect farmers.
7. 50% Minimum Domestic Processing Mandate
Beginning in the 2026/2027 crop season, a minimum of 50% of all cocoa beans must be processed locally.
This will be encoded in the new COCOBOD Bill. No more exporting raw beans while Ghanaian factories sit idle.
8. Immediate Allocation of Remainder Beans to Domestic Processors
For the current crop year, Cabinet has directed that all remaining beans be allocated to local processing companies.
The Minister confirmed that private processors met with him and the Trade Minister yesterday morning and “indicated they have the capacity and willingness to process more than 50% of Ghana’s cocoa beans going forward.”
9. Revival of CPC (Cocoa Processing Company) as Lead Processor
CPC will be revamped as a matter of priority to become Ghana’s flagship cocoa processor.
The Minister did not put a price tag on the revamp, stating operational details will be announced by CPC’s board and management. But the directive is clear: CPC will no longer be an afterthought.
10. GH¢5.8 Billion Legacy Debt Conversion to Ministry of Finance and Bank of Ghana
COCOBOD currently owes:
- GH¢3.7 billion to the Ministry of Finance
- GH¢1.38 billion to the Bank of Ghana
Cabinet has directed that this GH¢5.8 billion be converted onto the books of MoF and BoG to restore COCOBOD’s positive equity and strengthen its balance sheet for the new financing model.
11. GH¢4.35 Billion Road Debt Transferred to Ministries
Between 2014 and 2024, COCOBOD awarded GH¢26.5 billion in road contracts—GH¢21.5 billion between 2018 and 2021 alone.
After a rationalization exercise supervised by the Ministry of Finance and Ministry of Roads, the exposure has been reduced from GH¢21.7 billion to GH¢4.35 billion. Cabinet has directed that this remaining liability be transferred to the Ministry of Roads and Ministry of Finance for payment.
12. COCOBOD Banned from Quasi-Fiscal Expenditures—With Punishments
This is a line-item revolution.
The new Cocoa Board Bill will prohibit COCOBOD from road construction and other non-core expenditures entirely. And here’s the kicker: it will come with punishment if they ever do so.
No more using cocoa money to build roads. No more “special requests.” The board’s job is cocoa. Nothing else.
13. $500 Million World Bank Facility for Cocoa Roads
Announced in the 2026 budget, this facility will take over the construction of cocoa roads entirely.
Roads will still be built. Farmers will still access their farms. But COCOBOD will no longer finance them, and the Ministry of Roads will be accountable for delivery.
14. Concurrent Forensic Audit and Criminal Investigation
Cabinet has directed the Attorney General to commission concurrent forensic audit and criminal investigation into COCOBOD’s activities over the last 8 years.
Not an internal review. Not a “special audit” filed away in a drawer. A criminal investigation, running parallel to financial forensics, with the full weight of the Office of the Attorney General.
15. Immediate Operational Reforms and Cost-Cutting
“Wasteful and uncontrolled expenditure practices are to be curbed immediately.”
Cabinet has directed the Ministry of Finance to initiate immediate reforms at COCOBOD to streamline operations and cut costs. No specific figures were attached, but the directive is unambiguous: the era of unchecked spending ends now.
16. Jute Sacks Mismanagement Referred for Investigation
Responding to a journalist’s question about 18 containers of cocoa jute sacks stranded at port and a fresh $48 million letter of credit opened for unclaimed sacks, the Minister confirmed the matter is part of the Attorney General’s investigation.
“For five years in a row, all the previous administration did was buy jute sacks, not clear them, and order a new set,” Forson said. “It was more or less a procurement agenda, not buying to bag cocoa.”
17. New Producer Price Announced: GH¢41,392/Ton
Effective Thursday, February 12, 2026, the producer price for the remainder of the 2025/2026 crop season is:
- GH¢41,392 per metric ton
- GH¢2,587 per bag of 64kg
This represents 90% of the achieved gross FOB of $4,200 per ton—a deliberate cushion against the global price collapse while maintaining sector sustainability.
“Never Again”: A New Era?
At least four times during the press conference, the Minister returned to the same phrase: “Never again.”
Never again will a CEO have the power to cheat the farmer. Never again will a board chair determine who gets paid and who doesn’t. Never again will cocoa money build roads while farmers cannot afford school fees.
“Unfortunately, in the past, when the world market price moved up, the cocoa farmer did not benefit,” Forson said. “When the exchange rate depreciated, the cocoa farmer did not benefit. Never again should this practice be allowed to persist.”
The reforms announced yesterday are not merely administrative. They are structural. They are legislative. And if implemented, they will fundamentally rewire who cocoa works for in Ghana.
Accra, Ghana – Ghana’s Narcotics Control Commission (NACOC) is in the final stages of reviewing applications for cannabis licences, with successful applicants expected to receive approval to begin operations soon, marking a significant milestone in the country’s efforts to develop a legal and regulated cannabis sector.
Deputy Director-General for Enforcement, Control, and Elimination, Alexander Twum-Barimah, disclosed this while speaking at the Kwahu Business Forum on Saturday.
He emphasised that the review process has been “thorough and deliberate” to ensure that only applicants who fully meet all legal, regulatory, and security requirements are granted licences. NACOC officials engaged with potential investors at the forum’s exhibition stand, providing details on various licence categories, including cultivation, processing, distribution, and export.
Mr Twum-Barimah stressed that the commission is committed to building a properly regulated industry that creates legitimate economic opportunities while maintaining strict controls to prevent misuse and illegal activities.
“The goal is to strike a balance between enabling economic development and safeguarding public health and security,” he said.
All licence holders will be subject to ongoing monitoring and compliance checks.
The development signals Ghana’s intention to harness the economic potential of cannabis through job creation, investment, and export revenue, while aligning with international best practices in regulation. Further updates on the licensing process are expected in the coming weeks.
Accra, Ghana – As global oil prices continue to surge due to the ongoing Middle East conflict, the Ghanaian government has announced immediate and practical measures aimed at cushioning citizens from the impact of rising fuel costs.
Following an emergency Cabinet session chaired by President John Dramani Mahama, the government outlined three key interventions focused on direct price relief, affordable public transportation, and cutting unnecessary government expenditure on fuel.
Here are the 3 major steps Ghana is taking:
1. Suspension of Selected Taxes and Margins on Fuel
Ministers of Finance and Energy have been directed to suspend certain taxes and margins in the next fuel pricing window. This temporary reduction, which will last for four weeks (subject to review based on developments in the Middle East and global crude prices), is expected to ease the burden on consumers and transporters.
2. Massive Expansion of Affordable Metro Mass Transit Buses
The Minister for Transport has been tasked with fast-tracking the deployment of 100 newly acquired Metro Mass Transit buses onto high-traffic routes across the country. These state-owned buses will maintain significantly lower fares compared to private operators, offering citizens a cheaper and more reliable alternative for daily commuting.
3. Strict Enforcement of Ban on Fuel Allocations for Government Officials
All Ministers and senior government appointees have been reminded to strictly comply with President Mahama’s earlier directive cancelling fuel allocations and allowances. This move is aimed at reducing government expenditure on fuel and demonstrating leadership in belt-tightening during these challenging times.
These interventions form part of the government’s broader strategy to protect the economy and citizens from external shocks while hoping for de-escalation in the Middle East conflict.
Climate scientists and food security experts are warning that a powerful “super El Niño” expected later in 2026 could significantly intensify global food price pressures already heightened by the ongoing Middle East conflict involving Iran.
According to US meteorologists, there is roughly a one-in-three chance of a strong El Niño forming between October and December, while European models suggest an even higher probability of an exceptionally strong event.
A “super El Niño” occurs when sea surface temperatures in the eastern Pacific rise at least 2°C above normal. This phenomenon typically triggers extreme weather patterns, including severe droughts in key agricultural regions, which can sharply reduce crop yields for commodities such as cocoa, rice, sugar, food oils, coffee, bananas, and soy.
The timing is particularly concerning because the Iran conflict has already disrupted global fertilizer supplies and shipping routes through the Strait of Hormuz, driving up costs for fuel and agricultural inputs. Analysts say the combination of war-induced supply shocks and El Niño-driven weather extremes could create a “double squeeze” on food production and prices. The United Nations World Food Program has cautioned that prolonged conflict and elevated oil prices could push the number of acutely food-insecure people globally significantly higher.
Dawid Heyl of Ninety One noted that while the Russia-Ukraine war affected food markets, the current situation is more worrying due to its direct impact on fertilizer production and availability.
He warned that overlapping negative factors — geopolitical disruption and strong El Niño conditions — could prove especially damaging for vulnerable countries in Africa, India, Australia, Brazil, and Argentina.
Experts state that long-term resilience will require greater investment in climate adaptation, diversified supply chains, and international cooperation to protect global food security as geopolitical and climate risks increasingly intersect.
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