Ghanaian President John Dramani Mahama has scheduled an emergency Cabinet meeting for Wednesday, February 11, to tackle pressing challenges in the country’s cocoa sector, Minister for Government Communications Felix Kwakye Ofosu confirmed in a post on X.
The urgent session reflects mounting concerns over financing shortfalls, delayed payments to farmers and Licensed Buying Companies (LBCs), and risks to the stability of one of Ghana’s most critical export industries. Cocoa remains a cornerstone of the nation’s economy, contributing billions in foreign exchange, sustaining rural livelihoods, and underpinning broader agro-industrial activities.
“The President has convened this emergency Cabinet to address all pending issues affecting the cocoa industry,” Kwakye Ofosu said. “The government is committed to ensuring that farmers receive timely payments and that the sector remains stable and sustainable.”
Industry sources warn that liquidity constraints could disrupt cocoa purchases, putting at risk hundreds of thousands of farmers across the main producing regions. The Licensed Cocoa Buyers Association of Ghana (LICOBAG) indicated that the government must secure emergency financing to purchase an estimated 300,000 tonnes of cocoa beans through September, cautioning that failure to act could trigger sectoral instability.
The Ghana Cocoa Board (COCOBOD), which regulates the purchase, pricing, and export of cocoa, has acknowledged the funding gap and is reportedly exploring alternative financing mechanisms. Officials are considering adjustments to the long-standing syndicated loan model that traditionally underpins cocoa procurement, with the aim of ensuring timely disbursements and reducing reliance on cumbersome external funding arrangements.
More Read
Farmers have expressed dissatisfaction with the pricing framework for the 2025/2026 crop season, arguing that rates fall short of expectations and may incentivize smuggling to neighbouring markets. Local cooperatives and farmer groups have warned that inadequate pricing could undermine incomes and jeopardize long-term sectoral growth.
The emergency Cabinet meeting will assemble ministers, sector experts, and key government officials to devise immediate interventions. Discussions are expected to focus on measures to secure emergency financing, streamline cocoa purchases, improve cash flow to LBCs, and restore confidence in the value chain. Observers note that swift action is critical, as cocoa supports millions of rural livelihoods and drives a substantial portion of Ghana’s export revenue.
Economic analysts point out that Ghana’s cocoa sector has historically faced cyclical challenges related to international price fluctuations, currency volatility, and financing bottlenecks. “This emergency meeting underscores the government’s recognition that timely support is essential not only for farmers’ welfare but also for national economic stability,” said Dr. Kwesi Anang, a cocoa market analyst based in Accra.
The cocoa industry in Ghana employs hundreds of thousands of smallholder farmers and plays a vital role in foreign exchange generation. In 2025, the country exported over 800,000 tonnes of cocoa beans, ranking as one of the world’s top producers alongside Ivory Coast. Maintaining the sector’s financial health is therefore critical for both domestic and international market confidence.
With global demand for cocoa products expected to rise in the coming years, Ghana faces pressure to stabilize its production chain and secure the financial sustainability of the industry. The outcomes of Wednesday’s Cabinet session could determine immediate payment timelines, financing models, and long-term reforms aimed at strengthening Ghana’s cocoa sector resilience.
Officials have indicated that the government is committed to acting decisively to safeguard the livelihoods of farmers, ensure stability in LBC operations, and maintain Ghana’s position as a leading global cocoa supplier.
