By Nelson Ayivor
The government is taking decisive steps to stabilize the cocoa sector by transferring the Cocoa Board’s legacy debt to the Ministry of Finance and the Bank of Ghana.
The move, disclosed by the Finance Minister Dr. Cassiel Ato Forson, aims to restore positive equity and reinforce the Board’s balance sheet, paving the way for broader reforms and a new financing model.
Cabinet has directed the Finance Minister to seek parliamentary approval for the transfer of approximately 5.8 billion Ghana cedis in inherited debt.
This includes 3.7 billion cedis arising from non-marketable cocoa bills converted into loans, as well as a 1.3 billion cedis ten-year loan. By absorbing these obligations, the government intends to relieve Cocobod of long-standing financial pressures and strengthen its operational capacity.
In a complementary measure, road liabilities totaling 4.35 billion cedis will be shifted to the Ministry of Roads and the Ministry of Finance. Cabinet noted that road construction accounted for a significant portion of Cocoa Board’s financial difficulties, and the transfer is expected to allow the Board to focus resources on core cocoa sector operations.
This initiative forms part of a wider set of reforms designed to protect farmers, support domestic processing, and ensure the long-term sustainability of Ghana’s cocoa industry.
With this intervention, the government signals its commitment to a more sustainable cocoa economy, safeguarding farmer interests while creating the financial foundation for growth and modernization.