The International Monetary Fund (IMF) has identified 2024 as a difficult financial year for the Ghana Cocoa Board (COCOBOD), despite notable progress in 2023.
According to the IMF, COCOBOD has struggled to take advantage of record-high global cocoa prices due to low production levels during the 2023/2024 cocoa season. This shortfall has impacted the board’s ability to fulfill commitments under its forward sales contracts.
Data from the Ghana Statistical Service underscores the sector’s challenges, showing a 26% drop in cocoa output during the third quarter of 2024—marking the fifth consecutive quarter of decline.
The IMF also pointed out that Ghana missed a crucial opportunity to maximize gains from rising international cocoa prices because of its forward sales practices.
In response to these difficulties, the government increased the farmgate price of cocoa for the 2024/2025 season by 50%. This measure aims to discourage smuggling and the conversion of cocoa farmlands into illegal mining operations.
The IMF’s latest staff report acknowledged the government’s efforts to stabilize the sector, including establishing a dedicated cocoa desk at the Ministry of Finance as part of broader efforts to restore COCOBOD’s financial sustainability.