Ghana’s cocoa sector is grappling with a deepening financial crisis, with delayed payments to farmers stemming from policy reversals, internal power struggles, and costly misjudgments, according to Fiifi Boafo, a former Public Affairs Officer at the Ghana Cocoa Board (COCOBOD).

Speaking in an interview on Adom FM’s Dwaso Nsem, Boafo said the challenges facing COCOBOD did not arise overnight but are the result of decisions that have gradually weakened the financial stability of the country’s most important agricultural institution.

He identified three key factors behind the crisis: the politicisation of cocoa forward sales, leadership conflicts within COCOBOD and its subsidiary, the Cocoa Marketing Company (CMC), and failure to anticipate global cocoa price trends.

For decades, COCOBOD’s forward sales system involved selling about 70 percent of Ghana’s cocoa in advance, with the remainder held for spot sales to take advantage of potential market rallies. This approach, Boafo said, helped stabilise revenue, protect farmers during global price drops, and ensure timely payments.

However, he noted, the system became politically contentious. While in opposition, the National Democratic Congress (NDC) criticised forward sales, and after coming to power, the government reduced forward sales to just 30 percent of the projected 2025/26 crop, holding the rest in anticipation of a price rally that never materialised.

“The expected rally did not occur. Global cocoa prices fell, leaving COCOBOD with large unsold volumes. The Board now faces a dangerous financial gap, forced to sell cocoa below projected prices,” Boafo explained.

The former official warned that paying farmers the current farmgate price under these conditions could push COCOBOD into severe deficits, threatening the Board’s financial viability.

Leadership conflicts aggravate crisis

Boafo also pointed to internal leadership tensions as a major contributor. He highlighted ongoing conflict between the COCOBOD Chief Executive and the CMC Managing Director, a key subsidiary responsible for international cocoa marketing.

Historically, the CMC Managing Director was appointed from within COCOBOD’s technical ranks and worked under the Chief Executive’s authority. Boafo said the current arrangement, in which the Managing Director was appointed directly by the President, has created competing lines of authority, undermining coordination.

“The conflict has disrupted the Sales and Pricing Committee, delayed critical decisions, and weakened internal cooperation when swift, technical actions were most needed,” Boafo alleged.

He further argued that political influence and internal disputes sidelined technical expertise, leading to delayed cocoa sales and forcing COCOBOD to sell below prices already promised to farmers.

Calls for urgent action

Boafo stressed that the crisis is not due to low cocoa production but rather leadership and policy failures. He called for urgent government intervention, urging resolution of the leadership impasse and adoption of a balanced, technically guided sales strategy to stabilise the sector.

He also advocated for immediate financial support to help COCOBOD manage the price gap preventing timely payments.

“If decisive action is not taken quickly, the consequences for farmers, the cocoa industry, and the broader economy could be severe,” Boafo cautioned.