By Daniel Bampoe
Former Minister for Finance, Dr Mohammed Amin Adam, has sharply criticized the current government’s handling of the cocoa sector and broader economic management, accusing officials of failing to implement basic financial safeguards during periods of high commodity prices.
Speaking to party members, local executives, and supporters of the New Patriotic Party (NPP) in the Northern Region during the commencement of construction for a multi-purpose regional party headquarters in Tamale over the weekend, Dr Amin Adam questioned the government’s approach to cocoa pricing and currency interventions.
According to the former finance minister, a well-managed economy requires strategic measures such as “building buffets” or engaging in hedging during periods when commodity prices are high.
“If you know cocoa prices can go down globally, what did you do?” he asked, arguing that forward sales and hedging strategies were neglected
He noted that when cocoa prices were elevated last year, the government opted for spot market sales instead of securing contracts in advance, leaving the economy and cocoa farmers vulnerable when global prices collapsed.
“No buffets, no hedging, no forward sales. The result is that producer farmer price has been reduced,” he said, emphasizing the impact on the livelihoods of farmers.
Mohammed Amin Adam further challenged the narrative that the current administration is a better economic manager than its predecessor, highlighting the irony that an economy touted as well-managed could not protect cocoa farmers from price reductions.
“How can an economy that is better managed lead to a reduction in the producer price of cocoa? That’s not economic management,” he said.
The former minister also criticized the government’s currency management policies, pointing to excessive interventions in the foreign exchange market. “Last year alone, they pumped over $10 billion into the market to keep the cedi strong. This year, in just two months, they’ve already pumped $2.8 billion dollars,” he said.
He warned that such practices have led to overvaluation of the Ghana cedi, reducing the international competitiveness of exports and making Ghanaian goods more expensive abroad.
Highlighting the broader economic consequences, Mohammed Amin Adam explained that overvalued currency encourages imports, creating jobs in foreign countries rather than at home, while undermining domestic production and export potential.
“When your currency is overvalued, you do more imports and create jobs elsewhere instead of here. Exports create the jobs in Ghana,” he stressed.
His remarks come amid ongoing debates over the recent reduction of the cocoa producer price to GH¢41,392 per tonne, a decision that has sparked criticism from various quarters, including former COCOBOD officials and cocoa industry experts.
The controversy underscores concerns about the government’s preparedness to manage external shocks in global commodity markets and maintain the financial stability of key sectors like cocoa.
