Ghana’s cocoa sector is set to undergo a major transformation under elected leader John Dramani Mahama. Having won a decisive victory in the December 7 elections, Mahama has since announced his intention to restructure the cocoa industry, with particular emphasis on the need to revamp the state regulator, COCOBOD.
He has been highly critical of the current structure of the industry, noting that COCOBOD is competing with farmers for profits. This reform is essential, particularly as cocoa production has reached its lowest level in decades, due in part to the effects of climate change, tree diseases, and illegal mining.
Mahama has made clear his goal of stimulating growth and improving the efficiency of Ghana’s cocoa industry. One way to achieve this is through greater private sector involvement in some of the activities currently managed by COCOBOD. This approach would not only help to diversify the stakeholders involved, but also strengthen the industry’s competitiveness on the international market.
The regulator’s growing reliance on major exporters to finance cocoa bean purchases has left local trading companies on the sidelines. Mahama therefore wants to carry out a thorough reconstruction of COCOBOD in order to restore a fairer balance between the various stakeholders in the cocoa value chain.
In addition to purely economic issues, reforming the cocoa industry is also of political importance. The overwhelming victory of Mahama and his party, the National Democratic Congress, in the elections reflects a popular desire to combat the rising cost of living, social instability, and declining production in Ghana’s key cocoa and gold sectors.
The mandate that is opening up for John Dramani Mahama therefore promises to be a crucial opportunity to revitalize the cocoa sector, at the heart of the Ghanaian economy. With bold reforms and an innovative vision, the new government could usher in an era of prosperity and sustainability for the country’s cocoa industry.