President John Dramani Mahama has summoned his Cabinet to an emergency session on Wednesday, February 11, to confront mounting turmoil in Ghana’s cocoa industry, according to Felix Kwakye Ofosu, the Minister for Government Communications.
The meeting comes as the sector, long the backbone of Ghana’s economy, faces what industry leaders describe as its most severe financial strain in decades. Liquidity shortfalls have delayed payments to farmers and Licensed Buying Companies, raising fears of systemic instability.
“The government needs to secure emergency financing to buy an estimated 300,000 tonnes of cocoa beans through September to avoid a potential collapse,” the Licensed Cocoa Buyers Association of Ghana (LICOBAG) warned.
At the center of the crisis is the Ghana Cocoa Board (COCOBOD), which oversees pricing, purchases and exports. The regulator has acknowledged a funding gap and is working with the Ministry of Finance on possible solutions. Among them is a dramatic shift away from the syndicated loan model that has underpinned cocoa purchases for decades.
Farmers, meanwhile, have voiced frustration over the prices set for the 2025/2026 crop season, saying the rates fall short of expectations and risk fueling smuggling across borders. “The rates set fall short of expectations and could worsen smuggling incentives and undermine farmer incomes,” farmer groups said in statements.
The Cabinet session is expected to bring together ministers, sector experts and senior officials to chart immediate interventions. Discussions will focus on securing financing, ensuring timely payments to farmers, and restoring confidence in the cocoa value chain
