Ghana’s cocoa smuggling crisis is costing the nation far more than the tonnes of beans lost each year, with experts warning that the growing trade threatens foreign exchange inflows, farmer livelihoods, and the long-term sustainability of the cocoa sector.
In an interview, Mrs. Nana Yaa Peprah Amekudzi, Ghana Country Lead for Mondelez International’s Cocoa Life Programme and analyst, described cocoa smuggling as “one of the biggest silent drains on Ghana’s foreign exchange earnings,” adding that the practice has deepened rural poverty, weakened local trade networks, and placed additional pressure on national security resources.
Her comments come at a time when fresh data from COCOBOD shows that more than 7,000 tonnes of cocoa were smuggled out of the Volta and Oti Regions alone between the 2020 and 2025 crop years, contributing to an estimated US$1.1 billion in national losses over three years.
Smuggling undermines Ghana’s foreign exchange stability
Mrs. Amekudzi explained that Ghana’s dependence on cocoa as a primary export makes the country extremely vulnerable when significant volumes are illegally diverted to neighbouring markets.
“When cocoa is smuggled, Ghana loses more than the beans. We lose export revenue, we lose trade taxes, we lose investor confidence, and we lose strategic control over our biggest foreign exchange earner,” she said.
She said that for every tonne of cocoa smuggled into Togo or Côte d’Ivoire, Ghana loses between US$2,500 and US$3,000 in potential foreign exchange earnings, funds that could support the cedi, boost central bank reserves, and strengthen the national budget.
She noted that smuggling indirectly contributes to currency instability. “Cocoa inflows help stabilize the cedi during peak seasons. When large volumes are smuggled, Ghana receives less forex, and this reduces our currency buffers,” she said.
Farmers lose income and trust in the system
Mrs. Amekudzi also highlighted the socioeconomic strain on cocoa-growing communities. While some farmers are lured by slightly higher prices offered by smugglers, most lose out in the long term.
“Smuggling creates artificial price distortions, encourages middlemen to cheat farmers, and pushes families into deeper financial insecurity,” she said.
She warned that smuggling disrupts rural economies in multiple ways by reducing sales to licensed buying companies, it encourages illicit networks that exploit vulnerable farmers, undermines investments in extension services, seedlings, and productivity programmes, and further weakens cooperatives and community-level savings groups
In some border districts, traders, transport operators, and small businesses also face income losses when cocoa bypasses formal buying centres.
A threat to COCOBOD’s financial sustainability
The smuggling crisis comes at a time when COCOBOD is already struggling with rising production costs, increased loan obligations, and fluctuating global prices.
According to analysts, the diversion of beans reduces COCOBOD’s operational revenue for; producer price payments, road rehabilitation in cocoa-growing areas, mass pruning and pest control programmes, scholarship schemes, research and new seed variety development
“Smuggling shrinks COCOBOD’s revenue base. If the trend continues, Ghana may no longer be able to sustain critical productivity programmes,” Mrs. Amekudzi warned.
She added that without intervention, the long-term viability of Ghana’s cocoa sector could be jeopardized.
The hidden losses in transport, borders, and local trade
Beyond the headline figures, indirect losses to the wider economy are significant. Reviews by economic analysts shows that smuggling negatively affects transport and logistics because trucks, motor riders, and transport unions lose income when cocoa bypasses formal warehouses and district buying depots.
Also, market women, porters, scale operators, and depot workers face reduced activity when smuggling spikes, while border enforcement costs also force security agencies to dedicate additional personnel, patrols, and intelligence operations to counter smuggling, diverting funds from other national priorities.
In a long run, these indirect losses may amount to 10 to 15% of the value of smuggled cocoa.
Call to strengthen border surveillance and community support
Mrs. Amekudzi called for a collaborative approach between government, cocoa companies, security agencies, and local leaders.
“We need stronger monitoring systems, better support for farmers, and incentives that make legal sales more attractive than smuggling. Communities must be part of the solution,” she stressed.
She further emphasised that improving farm-gate prices, rehabilitating cocoa roads, and expanding community-based monitoring could significantly reduce smuggling pressures.
A national economic threat requiring urgent action
Some economists and industry experts agree that cocoa smuggling is no longer just an agricultural problem but it is a macroeconomic challenge with long-term implications for national revenue, currency stability, and rural development.
“If Ghana is to protect its cocoa legacy and economic future, smuggling must be tackled head-on with coordinated policy, strong institutions, and community participation,” Mrs. Amekudzi said.
