President John Mahama has strongly criticized the previous administration’s handling of Ghana’s cocoa sector, attributing the decline in cocoa production to significant mismanagement and poor decision-making.
During a courtesy call from the Ghana Cocoa, Coffee, and Sheanut Farmers Association, Mahama expressed concern over the declining state of the cocoa industry, pointing out that despite the fall in cocoa production, employment at COCOBOD (Ghana Cocoa Board) had increased.
He described this as counterproductive, as it goes against the normal business practice where a drop in production would typically lead to workforce reductions.
“Production has declined, yet COCOBOD’s staff numbers have increased, which is counterproductive. In business, when production and revenue decrease, workforce adjustments are made.
However, under the previous administration, employment at COCOBOD increased while production dwindled,” Mahama remarked.
He emphasized that such practices were not in line with sound management principles and contributed to the overall inefficiency in the sector.
Furthermore, Mahama highlighted that during the first four years of the previous administration, producer prices for cocoa remained stagnant, despite a steady depreciation of the local currency.
This, he explained, worsened the situation for farmers, as they were not receiving adequate compensation for their work in the face of rising costs.
He assured cocoa farmers and stakeholders that his government is committed to reversing this damaging trend by making necessary strategic corrections.
“This year will be a year of correction to address these issues and restore the industry to a strong footing,” Mahama affirmed, pledging to restore the cocoa industry to its former strength.
Mahama also took the opportunity to address the current financial challenges facing COCOBOD. He revealed that the board is currently saddled with a GH₵3.2 billion debt, with GH₵9 million required to be paid by September.
According to Mahama, the mounting debt burden has hindered the flow of funds to cocoa farmers, as much of the available money is being used to service COCOBOD’s debts, instead of being reinvested in cocoa production.
In light of these challenges, Mahama reassured the farming community that his administration would prioritize the revitalization of the cocoa sector, focusing on long-term sustainability, improved compensation for farmers, and enhanced management of resources within COCOBOD.
