The Ghana Cocoa Board (COCOBOD) is facing a significant financial crisis and requires more than GH¢30 billion in working capital to remain operational, Mr Isaac Adongo, Chairman of the Finance Committee of Parliament, has said.
Addressing journalists at a press conference in Parliament House, Mr Adongo said an assessment of COCOBOD’s financial statements revealed a substantial funding gap.
“COCOBOD requires over 30 billion cedis in working capital for it to survive, not the 60 billion left behind. If you look at the accounts, you realize that there is a big hole in there,” he stated.
The briefing, organised by the National Democratic Congress (NDC) Majority Caucus in Parliament, was on the theme: “Cocoa Sector Reforms and Matters Arising.”
To help address the financial strain, COCOBOD has rolled out cost-cutting measures, including salary reductions for executive management and senior staff. Executive members will take a 20 per cent pay cut, while senior staff will receive a 10 per cent salary reduction, effective immediately and lasting through the 2025/2026 crop year.
The initiative is expected to save the institution an estimated GH¢5 million monthly.
Mr Adongo, who is also the Member of Parliament for Bolgatanga Central, said the government was seeking parliamentary approval to restructure a legacy debt of GH¢5.8 billion owed to the Bank of Ghana and the Ministry of Finance by converting it into long-term obligations.
In addition, road-related liabilities amounting to GH¢4.35 billion are to be transferred from COCOBOD to the Ministry of Roads and Highways and the Ministry of Finance.
According to him, the interventions were part of broader efforts to stabilise COCOBOD’s finances and safeguard the sustainability of the cocoa sector.
As part of the ongoing reforms, the government has also reduced the farmgate price of cocoa from GH¢3,625 to GH¢2,587 per bag.
