• Ghana cuts COCOBOD cocoa road debt from ¢21.7bn to ¢4.35bn.
• Finance Minister Forson announces major COCOBOD fiscal reforms.
• Cabinet directs cocoa road liabilities moved to Roads Ministry.

Ghana's government has ordered a series of structural reforms to restore financial viability to the Ghana Cocoa Board (COCOBOD), starting with a dramatic reduction of the institution's exposure to cocoa road contracts. Following an emergency Cabinet meeting called by President John Dramani Mahama on 11 February 2026, Finance Minister Dr Cassiel Ato Forson announced that COCOBOD's cocoa road liabilities had been cut from GH¢21.7 billion ($1.97 billion) to GH¢4.35 billion ($395 million), following a rationalisation exercise jointly carried out by the Ministry of Roads and Highways and COCOBOD under the supervision of the Ministry of Finance. The Cabinet has directed that the remaining GH¢4.35 billion liability be transferred to the Ministry of Roads and Highways, removing it entirely from COCOBOD's balance sheet.

The scale of the problem is rooted in years of contract accumulation. Between 2014 and 2024, COCOBOD awarded cocoa road contracts valued at up to GH¢26.5 billion ($2.41 billion), with GH¢21.5 billion ($1.95 billion) of that total incurred during the 2018/19, 2019/20 and 2020/21 crop years alone. Cabinet acknowledged that the volume of these commitments far exceeded the institution's core mandate and significantly contributed to its financial difficulties. Under the IMF programme agreed in 2023, COCOBOD was required to rationalise its cocoa road exposure from GH¢21.7 billion to GH¢6.9 billion ($627 million), but the previous board and management failed to carry out the exercise.

Restructuring the balance sheet to rebuild confidence

Beyond road liabilities, the government is moving to convert part of COCOBOD's legacy debt into equity. Cabinet has directed the Finance Minister to seek Parliamentary approval for the conversion of approximately GH¢5 billion ($455 million) in debts owed to the Ministry of Finance — GH¢3.7 billion ($336 million) arising from the conversion of non-marketable cocoa bills into a loan — and to the Bank of Ghana, which holds a ten-year loan of GH¢1.38 billion ($125 million). Dr Forson said the conversion would restore positive equity to COCOBOD and strengthen its financial standing, boosting confidence in both international and local markets.

To ensure the continued development of infrastructure in cocoa-growing areas without burdening COCOBOD, the government has secured a $500 million World Bank facility, as announced in the 2026 Budget, to finance the construction of agricultural roads nationwide, including those serving cocoa-producing communities.

These measures come against a backdrop of acute liquidity strain that has been building since late 2024. Licensed Buying Companies are collectively owed about GH¢2.04 billion ($185 million) in outstanding payments for cocoa deliveries made during the 2023/24 and 2024/25 seasons. Under the traditional system, banks extend credit to LBCs on the expectation of reimbursement from COCOBOD, enabling them to pay cocoa farmers in cash at the time of sale. Prolonged delays in those reimbursements have weakened this financing mechanism, forcing some LBCs to halt purchases, leaving beans in warehouses and farmers without timely payment.

The debt build-up has also reignited earlier debates over private-sector involvement. As early as April 2025, the Agriculture Minister disclosed plans to explore private-sector collaboration to boost production and improve efficiency. International traders were asked to pre-finance up to 80 per cent of cocoa purchases. When global cocoa prices were around $12,000 per tonne, the model appeared feasible. But as prices fell toward $4,000 per tonne, many traders withdrew, leaving LBCs and farmers exposed to cash flow gaps and unsold stocks.

As part of measures to prevent a recurrence of past problems, a new COCOBOD Bill explicitly prohibits the institution from engaging in quasi-fiscal expenditures and non-core activities, including road construction. The legislation is intended to enforce strict adherence to the institution's mandate and strengthen accountability. Cocoa remains central to Ghana's export earnings and rural livelihoods, and the coming months will be decisive in determining whether the sector can stabilise its purchasing functions and restore confidence among farmers, traders and international buyers.

Cynthia Ebot Takang, Edited by Idriss Linge