The International Monetary Fund (IMF), has said that Ghana’s cocoa sector is showing signs of recovery following challenges in recent years.
The Fund, in its latest Country Report on Ghana, noted that cocoa production has improved since late 2024, helped by better climatic conditions and ongoing productivity-boosting interventions.
These interventions include artificial pollination, mass pruning, mass spraying, and the use of high-tech farming methods, which have contributed to a stronger 2024/25 season output.
The report also highlighted that global cocoa prices have remained high, supporting the sector’s financial outlook.
The Ghana Cocoa Board (COCOBOD) is expected to meet its contractual obligations from both the previous and current seasons, except for a limited share that has already been renegotiated with buyers.
A key driver of the improved performance, the IMF said, is COCOBOD’s adoption of a new financing model.
The model reduces dependence on syndicated loans by incorporating more flexible trade financing options. As a result, liquidity constraints have eased, enabling quicker payments to cocoa farmers and improving cash flow.
“COCOBOD’s cash flow is expected to remain balanced throughout the 2024/25 season,” the IMF noted.
In addition, COCOBOD is advancing its turnaround strategy with technical and financial backing from the World Bank. The strategy aims to restore the institution’s financial health by strengthening financial oversight, keeping the producer price within 60% to 70% of international market prices, and controlling operational costs through a review of its departments and subsidiaries.
However, the World Bank is supporting a comprehensive functional and expenditure review to enhance efficiency and develop a cocoa sector modernisation strategy.
This strategy is intended to align with the Government of Ghana’s broader goal of building a cocoa industry that is resilient, sustainable, and competitive on the global stage.
