The World Bank has issued a stark warning over the financial health of the Ghana Cocoa Board (COCOBOD), cautioning that mounting debts and persistent operational challenges could destabilize one of Ghana’s most critical export sectors.
In its latest Ghana Economic Update, the Bank noted that despite global cocoa prices hitting multi-decade highs, Ghana’s production remains subdued, with COCOBOD burdened by significant arrears to suppliers. The report further criticized the agency’s “quasi-fiscal operations” activities beyond its core mandate for exacerbating financial risks.
“If left unresolved, these challenges could have wider implications for Ghana’s economy, given cocoa’s critical role as a major source of foreign exchange and rural incomes,” the World Bank stated.
The report urged COCOBOD to streamline its operations, focus squarely on sustaining cocoa production, and improve efficiency, while calling for “stronger oversight and accountability” across both the agricultural and energy sectors to curb fiscal risks.
Cocoa is Ghana’s second-largest export earner after gold, generating billions of dollars annually. Analysts warn that without urgent reforms to address production and financing bottlenecks, the country risks missing out on the windfall from favourable global prices.
The World Bank’s recommendations come at a time when sector watchers say Ghana has a narrow window to translate record market conditions into lasting gains for farmers and the broader economy.
