• Ghana Cocoa Board (Cocobod) owes 32.5 billion cedis ($2.7 billion) and faces production falling 40% since 2020.
• Ghana uses less than 50% of its 504,780-ton cocoa processing capacity due to raw bean shortages.
• Vice President Naana Jane Opoku-Agyemang calls for blended finance and EU partnership to boost local processing.

Ghana, the world’s second-largest cocoa producer after Côte d’Ivoire, plans to accelerate local cocoa processing despite severe financial and agricultural constraints. Although the country hosts several processing plants, most of its beans continue to be exported raw, limiting value addition within the economy.

At the Global Gateway Forum in Brussels on October 9–10, Vice President Naana Jane Opoku-Agyemang reaffirmed the government’s goal to increase cocoa processing capacity. Her remarks revived debate over Ghana’s ability to overcome chronic funding shortages and supply constraints in the sector.

Financing and Raw Material Access Remain Key Challenges

Access to financing remains one of the main bottlenecks for Ghana’s cocoa industry. Commercial banks, already heavily exposed to the sector, have been reluctant to extend new loans, even to established processors. This tightening credit environment has raised borrowing costs and limited working capital across the value chain.

Cocobod, the regulator overseeing the industry, has accumulated about 32.5 billion cedis ($2.7 billion) in debt as of 2025. In its June Economic Update report, the World Bank warned that Cocobod’s financial instability and quasi-fiscal operations pose “a significant fiscal risk.” The report noted that “despite high global prices, low cocoa output and substantial arrears to suppliers continue to strain the sector’s finances.”

Processing plants also struggle with inconsistent supply of raw beans. The U.S. Department of Agriculture (USDA) estimates Ghana’s installed cocoa grinding capacity at 504,780 tons, yet less than half is currently utilized. Domestic grinding volumes have hovered around 210,000 tons for the past two seasons.

The USDA attributes the low utilization rate to reduced cocoa output driven by declining orchard sizes and unfavorable weather. Cocobod estimates that about 500,000 hectares of cocoa farms are now unproductive, affected by illegal mining, aging trees, and the spread of the swollen shoot virus.

National production has dropped 40% in four years—from 1 million tons in the 2020/2021 season to 600,000 tons in 2024/2025. Cocobod projects a modest recovery to 650,000 tons for the 2025/2026 harvest. However, with 70–80% of Ghana’s output already tied to forward contracts, processors are expected to continue operating below capacity.

Global Tariffs Favor Raw Bean Exports

Market conditions further complicate Ghana’s push for value addition. The European Union, Ghana’s largest export market, imposes zero tariffs on raw cocoa beans but levies up to 9.6% on cocoa paste and as much as 25% on finished chocolate.

Trade Map data show that Ghana earned about $2.9 billion in cocoa export revenue in 2024, with 55% coming from unprocessed beans, 24% from cocoa paste, 14% from cocoa butter, 4% from cocoa powder, and less than 1% from chocolate. The current tariff structure continues to discourage large-scale processing and export of value-added products.

Calls for Blended Financing and Policy Reform

Vice President Opoku-Agyemang said Ghana seeks stronger partnerships with the European Union to address both financing and market access barriers. “I have advocated for structured blended financing models combining equity investment, affordable working capital, risk-sharing mechanisms, and technical support—particularly for small processors and rural operators,” she said.

She also urged international partners to reconsider tariff increases that penalize processed cocoa exports. Meanwhile, the government is rolling out measures to raise domestic production, including plans announced in June to allocate 200,000 hectares of new farmland to Cocobod for industrial cocoa plantations.

Analysts say a coordinated strategy will be essential to translate these initiatives into tangible outcomes. Without clear sequencing between financing, production recovery, and trade policy reforms, Ghana risks missing another opportunity to develop a competitive cocoa processing industry.

This article was initially published in French by Stéphanas Assocle

Adapted in English by Ange Jason Quenum

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