The government has directed immediate repayment to cocoa farmers who were left unpaid following years of mismanagement in the sector.
Dr. Cassiel Ato Forson, Finance Minister, announced the directive at a press briefing on February 12, revealing that Cabinet had convened an emergency meeting on Wednesday to address what he described as a deepening cocoa crisis.
“Cabinet has directed the Ghana Cocoa Board to commence immediate repayment of all affected cocoa farmers,” Dr. Forson stated.
“This is to ensure farmers receive what is rightfully theirs and to restore trust in the sector.”
Emergency Cabinet Intervention
According to the Minister, the decision follows mounting financial challenges confronting the Ghana Cocoa Board, including its inability in 2024 to pay the final tranche of a syndicated loan that matured in July.
To avert a potential default, the Ministry of Finance provided a 70 million United States dollar bridge financing facility. However, despite the intervention, the cocoa board failed to honor its repayment obligations.
“Despite the commitment to repay the 70 million bridge finance owed to the Ministry of Finance, the cocoa board defaulted,” Dr. Forson confirmed, underscoring the severity of the board’s financial distress.
Inherited Debt and Sector Stabilization
The Finance Minister indicated that the current administration has assumed responsibility for the inherited debt burden and is working closely with the management of the Ghana Cocoa Board to restore stability to the sector.
He emphasized that the immediate repayment directive is designed not only to provide relief to farmers but also to safeguard the long-term sustainability of Ghana’s cocoa industry.
“This decision guarantees a fair price to the cocoa farmer, secures the financial viability of the cocoa sector, and ensures long-term sustainability of the industry,” he said.
The move is expected to bring renewed confidence among cocoa farmers and stakeholders, as the government seeks to rebuild trust and strengthen one of the country’s most critical export sectors.
