All things being equal, Ghana will be locally processing at least 50% of its cocoa production by the year 2030 as part of efforts to increase revenue from the cash crop.
The country currently processes about 40% of its total production, far behind its neighbour, Côte d’Ivoire, which currently processes about 50%.
In a bold move to transform the fortunes of its cocoa sector, President John Dramani Mahama has set its sights on processing at least 50% of its cocoa locally within the next five years.
This, he says, is a significant step aimed at adding value, creating jobs, and increasing foreign exchange earnings.
President John Dramani Mahama made this announcement during a high-level presidential session at the 60th Annual Meeting of the African Development Bank (AfDB) and the 51st Annual Meeting of the African Development Fund (ADF), held in Abidjan, Côte d’Ivoire.
“From a low of about 25% processed cocoa, Ghana has risen to about 40%. Côte d’Ivoire is ahead of us. They have done 50%, which is commendable. We hope that over the next four to five years, we will reach the stage of Côte d’Ivoire at 50% and push even further,” President Mahama pledged.
This ambition signals that the country is on the verge of shifting its cocoa strategy, which for years hinged on the exportation of raw cocoa beans.
Ghana and Côte d’Ivoire together supply over 60% of the world’s cocoa beans, yet they account for less than 6% of the nearly $130 billion global chocolate industry. Raw cocoa exports have long limited the revenue potential for Ghana’s economy, which remains exposed to price volatility on the international market.
By increasing local processing, Ghana aims to capture a larger share of the value chain, promote industrialization, and stimulate job creation, especially for its youth.
This ambition, if followed through, will result in higher export earnings through semi-finished products like cocoa butter, paste, and powder that command higher global prices. Improved forex earnings is also a gain for the stability of the local currency.
The country also stands to benefit from a reduced exposure to global price shocks, as processed cocoa is less volatile than raw beans.
There will be enhanced job creation, particularly in processing, logistics, packaging, and branding.
Moreover, it aligns with the African Continental Free Trade Area (AfCFTA) ambitions, positioning Ghana as a potential hub for cocoa processing and finished chocolate products across the continent.
Despite the promising prospects, Ghana’s path to 50% processing is not without challenges.
The country, for a successful implementation of this vision, must move to address its infrastructure and energy challenges. Experts say cocoa processing is energy-intensive, and frequent power disruptions could undermine investor confidence.
There’s also the need for increased investment in modern processing technology and capacity expansion. Local processors face high financing costs and limited access to credit.
Another critical issue is market access and branding. Competing on the global stage requires strong marketing strategies, compliance with international quality standards, and support for local brands.
President Mahama, even at the event, recognized this challenge but was optimistic that the country could still find its way around it by implementing the right measures.
This new policy direction comes at a time when the Ghana Cocoa Board (COCOBOD) has already expressed its commitment to facilitating joint ventures, improving farmer productivity, and supporting domestic processors through supply contracts and technical assistance.
This vision of President John Mahama to process half of its cocoa locally, if properly implemented, could be a game-changing step that could redefine its economic structure and place in the global cocoa economy. However, there are numerous hurdles that need to be overcome to realize the dream.
