The International Monetary Fund (IMF) has flagged 2024 as a particularly challenging financial year for Ghana Cocoa Board (COCOBOD) despite some gains recorded in 2023.
According to the Bretton Woods institution, COCOBOD has struggled to capitalize on record-high global cocoa prices due to weak production levels during the 2023/2024 cocoa season.
This, the IMF notes, has significantly hampered COCOBOD’s ability to meet commitments under existing forward sales contracts.
Data from the Ghana Statistical Service underscores the dire state of the cocoa sub-sector.
For the fifth consecutive quarter, the sector contracted sharply, recording a staggering 26% decline in output for Q3 of 2024.
The IMF further observed that Ghana missed a critical opportunity to fully benefit from surging international cocoa prices due to its forward sales arrangements.
To address the sector’s challenges, the government implemented a 50% hike in the 2024/2025 farmgate price for cocoa.
This move aims to curb the smuggling of cocoa to neighboring countries and discourage the conversion of cocoa farmlands for illegal mining activities.
In its latest staff report, the IMF acknowledged ongoing efforts by the government to stabilize the sector.
Key among these is the establishment of a dedicated cocoa desk at the Ministry of Finance, which forms part of a broader strategy to restore COCOBOD’s financial sustainability.
