Gov’t Proposes Major Overhaul of COCOBOD Act to Protect Farmers and Boost Local Processing

Finance Minister Dr. Cassiel Ato Forson has unveiled a massive overhaul of the Ghana Cocoa Board Act in Parliament, as part of government’s efforts to modernize the governance and financing of the cocoa sector.

The proposed Bill seeks to repeal and replace the Ghana Cocoa Board Act, 1984 (PNDC Law 81) with a new COCOBOD law that prioritizes farmer income, value addition, and fiscal discipline. According to Dr. Forson, the Ministry will guarantee cocoa farmers not less than 70% of the gross Free On Board (FOB) price. 

This, the Minister said, is to ensure farmers benefit more directly from global cocoa earnings .Also,the  Bill will mandate that at least 50% of raw cocoa beans are processed locally in Ghana to deepen value addition and create jobs within the country. The minister hinted that ,a new pricing system will be introduced to align the producer price with movements in international cocoa prices, exchange rate developments, and other relevant market conditions.

The proposed law will restrict COCOBOD from engaging in non-core fiscal spending, to refocus the Board on its core mandate. A new financing framework will be established for cocoa purchases and related operations.  “this is aimed at restoring the long-term financial sustainability and operational efficiency of Ghana COCOBOD.”

“Government will submit a new COCOBOD Bill to Parliament to repeal and replace the Ghana COCOBOD Act 1984, PNDC Law 81,” Dr. Cassiel Ato Forson stated. “The proposed legislation will introduce a new pricing mechanism that aligns producer price with movement in international cocoa price, exchange rate developments and other relevant market conditions.” He continued 

Dr. Forson noted that the reforms are expected to improve transparency, strengthen the cocoa value chain, and secure better livelihoods for farmers while positioning Ghana to gain more from its cocoa industry. The Bill is expected to be laid before Parliament for consideration and debate in the coming weeks.

By: Anita Oppong Yeboah