Ghana’s president-elect, John Dramani Mahama, has announced plans to overhaul the nation’s cocoa industry and restructure its state-run regulator, COCOBOD, to boost growth and efficiency.
In an interview with Reuters on Friday, Mahama criticized the current structure where COCOBOD competes with farmers for profits, questioning its fairness. “Can we have a state enterprise that is the regulator and quality controller, and that creates an opportunity where the farmer is getting his money directly?” Mahama asked.
COCOBOD, which oversees all cocoa production in Ghana, controls everything from seedlings to jute bag supplies for export. However, previous efforts to break up the board have failed. Mahama hinted that private sector involvement could be considered in areas traditionally managed by COCOBOD.
Mahama’s victory in the December 7 election marked a strong rejection of the current government’s handling of the economy, particularly the rising cost of living and stagnating production in key sectors like cocoa and gold. With a parliamentary majority for his National Democratic Congress party, Mahama is set to assume office on January 7.
One of his administration’s key goals is to revitalize the cocoa and crude oil industries to help spur economic recovery. Ghana’s cocoa production recently hit a historic low, hindered by climate change, disease, and illegal mining.
COCOBOD’s administrative costs, which tripled from 2018 to 2023, have also drawn heavy criticism. Mahama blames wasteful spending for draining production funds and depriving farmers of fair prices. His proposed reforms aim to streamline operations and place more focus on benefiting farmers.
The IMF has called on COCOBOD to present a cost-cutting turnaround plan. Mahama has pledged to work with any parties that can help make the cocoa sector more efficient and restore its former glory.