BY Nadia Ntiamoah
Fresh concerns are emerging within the cocoa sector after the International Monetary Fund (IMF) called for deeper reforms at the Ghana Cocoa Board (COCOBOD), including measures that could pave the way for more frequent cocoa producer price adjustments, at a time when farmers are already expressing anger over recent price reductions introduced by the government.
The IMF’s latest recommendations were contained in its 2026 Article IV Consultation and staff-level agreement with Ghana on the sixth review of the Extended Credit Facility (ECF) programme, as well as a new 36-month Policy Coordination Instrument (PCI) arrangement.
According to the IMF, Ghana’s cocoa sector remains financially vulnerable and requires urgent structural reforms to ensure the long-term sustainability of COCOBOD, which has struggled in recent years with mounting debts, falling production levels, illegal mining activities, smuggling, and operational inefficiencies.
The Fund specifically called for reforms aimed at strengthening the legislative framework governing the cocoa sector, streamlining operational costs, and implementing more frequent farmgate price adjustments to improve efficiency and financial sustainability.
Although the IMF statement did not directly order a reduction in cocoa prices, the recommendation for more regular price adjustments has triggered fresh political debate and anxiety among cocoa farmers, many of whom are still unhappy over recent producer price changes introduced under the current administration.
The controversy comes against the backdrop of heated national discussions over cocoa pricing policies following the return of the National Democratic Congress (NDC) to power under President John Mahama.
During the 2024 election campaign, the NDC strongly criticised the then New Patriotic Party (NPP) government over what it described as poor treatment of cocoa farmers and inadequate producer prices despite rising global cocoa prices on the international market.
At the time, the NDC accused the previous administration of failing to ensure that cocoa farmers fully benefited from the surge in global cocoa prices and repeatedly promised improved conditions for farmers if elected into office.
However, tensions began mounting earlier this year after the government announced adjustments to cocoa producer prices which many farmers and industry players interpreted as effectively reducing the expected gains farmers should have received from the sharp rise in world market prices.
Several cocoa farmers across cocoa-growing regions expressed disappointment, arguing that despite campaign promises of better remuneration and improved welfare, they were still struggling with rising production costs, swollen shoot disease, illegal mining destruction, and worsening economic conditions.
Farmer groups and some cocoa purchasing clerks also complained that the pricing structure failed to reflect the realities on the ground, especially at a time when neighbouring Ivory Coast continued to revise prices to protect farmer incomes and discourage cocoa smuggling across borders.
The situation sparked strong criticism from the Minority in Parliament, particularly members of the opposition NPP, who accused the Mahama administration of betraying cocoa farmers after making ambitious promises during the election campaign.
Minority MPs argued that the government’s pricing decisions were discouraging cocoa production and worsening frustration among farmers already battling declining yields and rising operational costs.
Some opposition lawmakers further claimed that the government was using COCOBOD’s financial difficulties as justification to impose unpopular measures on farmers instead of pursuing aggressive reforms to reduce waste and improve efficiency within the institution.
COCOBOD has in recent years faced severe financial pressure due to a combination of declining cocoa production, debt obligations, syndicated loan repayment challenges, and revenue losses linked to illegal gold mining, commonly known as galamsey, which has destroyed large cocoa farmlands in several regions.
The cocoa sector has also struggled with increased smuggling of beans into neighbouring countries due to price disparities, forcing authorities to tighten border surveillance and review purchasing systems.
In its latest assessment, the IMF indicated that the cocoa sector remains one of the key vulnerabilities threatening broader economic stability despite gains made under the country’s IMF-supported recovery programme.
The Fund warned that unless deep structural reforms are undertaken, COCOBOD’s financial sustainability could remain under pressure, creating additional fiscal risks for the government.
Apart from the cocoa sector concerns, the IMF also raised issues regarding the financial position of the Bank of Ghana and operational inefficiencies within the energy sector, particularly losses at the Electricity Company of Ghana (ECG).
The IMF further cautioned Ghana against policy slippages, rising debt levels, fiscal indiscipline, and reform reversals, stressing that maintaining economic stability after the ECF programme would require strict fiscal discipline and continued structural reforms.
Meanwhile, the government has announced that Ghana will remain under IMF policy coordination for the next three years through the newly approved Policy Coordination Instrument (PCI), even though the country has officially exited the financing phase of the IMF bailout programme.
The government insists the PCI arrangement is not another bailout programme but rather a technical assistance and policy support framework designed to maintain investor confidence and sustain economic recovery efforts.
However, the renewed IMF oversight, coupled with recommendations for deeper reforms in sensitive sectors such as cocoa, is expected to intensify political debate over the future direction of the economic management and the welfare of cocoa farmers, who remain central to the country’s export economy.
