Ghana Cocoa Board has accused some officials at licensed buying companies of diverting funds to purchase cheaper cocoa beans smuggled from neighbouring Ivory Coast, warning the practice is depriving local farmers of income and threatening Ghana’s premium cocoa reputation.
The allegations point to a growing reversal in cross-border smuggling patterns in West Africa’s top cocoa-producing region, where Ghana has historically battled the illegal outflow of its beans into neighbouring countries offering higher prices.
“We were fighting smuggling of Ghana’s cocoa to Ivory Coast; now the reverse is the situation and we should be concerned,” said Jake Kudjo Semahar, director of special services at COCOBOD.
He said the practice has spread across at least four regions along the Ghana–Ivory Coast border, driven by a widening price gap between the two countries.
According to COCOBOD, cocoa in Ivory Coast is selling at around 1,200 cedis (about $107) per 64-kilogramme bag, significantly below Ghana’s official farmgate price of about 2,587 cedis. The difference has created incentives for unscrupulous actors to exploit the arbitrage opportunity.
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Semahar alleged that some officers and purchasing clerks working with licensed buying companies are channelling funds intended for local cocoa purchases into cross-border deals, using intermediaries to source beans from Ivory Coast.
The Licensed Cocoa Buyers Association of Ghana distanced its member companies from direct involvement, attributing the activity to individual misconduct rather than institutional policy.
“No licensed buying company will sanction this,” said the association’s general secretary, Vitus Dzah. “These are individual clerks acting out of personal greed.”
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He added that some clerks provide funds to middlemen who then travel into Ivory Coast to procure cocoa on their behalf, bypassing official channels.
The issue echoes a similar episode during the 2004/2005 season, when buying companies reported significant financial losses linked to illicit cross-border cocoa transactions.
The development comes at a difficult time for Ghana’s cocoa sector, which has been grappling with a prolonged liquidity crisis. Farmers in several producing areas have reported delays in payments for beans delivered since late 2025, raising concerns about financing constraints within the industry.
Analysts say the diversion of funds toward smuggled cocoa could further strain already tight liquidity, reducing the resources available to pay domestic farmers and undermining confidence in the sector.
Semahar warned that the implications go beyond farmer incomes, cautioning that the blending of foreign beans with Ghanaian cocoa could damage the country’s long-standing reputation for high-quality produce.
Ghana’s cocoa typically commands a premium on international markets due to strict quality controls and traceability standards. Any dilution of this quality, industry observers say, could erode that advantage and affect export earnings.
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“Apart from denying farmers their income, Ghana is effectively subsidising producers in Ivory Coast,” Semahar said.
COCOBOD said it has stepped up enforcement measures in response to the growing trend. Its anti-smuggling unit recently arrested four suspects and seized more than 100 bags of smuggled cocoa in Nkrankwanta, near the border.
The operation is part of what officials describe as a broader crackdown aimed at curbing illegal cross-border trade and restoring discipline within the cocoa purchasing system.
The regulator said investigations are ongoing and warned that sanctions would be imposed if evidence emerges of institutional involvement by licensed buying companies.
Ghana and Ivory Coast together account for more than 60 percent of global cocoa production, making developments in their sectors critical to international supply and pricing dynamics.
Industry stakeholders say resolving the issue will require not only stricter enforcement but also addressing underlying price distortions and financing challenges that create incentives for smuggling.
For now, COCOBOD faces the dual challenge of protecting farmer livelihoods while safeguarding the integrity of one of Ghana’s most important export commodities.
