The Ghana Cocoa Board (COCOBOD) is grappling with a deep financial crisis and needs more than GH¢30 billion in working capital to remain operational, Mr Isaac Adongo, Chairman of Parliament’s Finance Committee, has disclosed.
Addressing a press conference at Parliament House in Accra on Thursday, Mr Adongo pointed to what he described as a significant funding gap in COCOBOD’s accounts.
“COCOBOD requires over 30 billion cedis in working capital for it to survive, not the 60 billion left behind. If you look at the accounts, you realize that there is a big hole in there,” he stated.
The press briefing, themed “Cocoa Sector Reforms and Matters Arising,” was organised by the Majority Caucus of the National Democratic Congress (NDC) in Parliament.
Mr Adongo, who is also the NDC Member of Parliament for Bolgatanga Central, outlined a series of measures being implemented to stabilise the cocoa regulator’s finances and safeguard the sustainability of the sector.
As part of cost-containment efforts, COCOBOD has introduced salary reductions for its top executives and senior staff. Executive management will take a 20 percent pay cut, while senior staff will have 10 per cent deducted from their salaries.
The reductions take immediate effect and will remain in place for the 2025/2026 crop year. The move is projected to save the Board approximately GH¢5 million each month.
In addition to internal cost-cutting, government is seeking parliamentary approval to restructure legacy debts owed by COCOBOD.
Mr Adongo revealed that a GH¢5.8 billion debt owed to the Bank of Ghana and the Ministry of Finance would be converted into long-term obligations.
Furthermore, road-related liabilities amounting to GH¢4.35 billion are expected to be transferred from COCOBOD to the Ministry of Roads and Highways and the Ministry of Finance.
Mr Adongo explained that these interventions were designed to ease the financial burden on COCOBOD, improve its balance sheet and ensure the long-term viability of Ghana’s cocoa industry.
As part of broader reforms within the sector, government has also reduced the farm gate price of cocoa from GH¢3,625 to GH¢2,587 per bag.
The measures, according to the Majority Caucus, form part of a comprehensive strategy to restore financial stability to COCOBOD and reposition the cocoa sector for sustainable growth.
