The World Bank’s latest Ghana Economic Update has flagged growing concerns over the financial stability of the Ghana Cocoa Board (COCOBOD), cautioning that persistent operational and fiscal challenges could undermine one of the nation’s most important export sectors.
The report noted that despite global cocoa prices reaching record highs, Ghana’s cocoa production remains weak, while COCOBOD carries substantial debts to its suppliers. It further observed that the agency’s engagement in activities beyond its core mandate—described as quasi-fiscal operations—has amplified financial risks.
According to the World Bank, if these issues are not addressed, the implications could ripple through the broader economy, given cocoa’s central role as a major source of foreign exchange and a lifeline for rural communities.
The report urged stronger oversight and accountability in both the agricultural and energy sectors to curb fiscal risks and ensure long-term stability. For COCOBOD, it recommended a sharper focus on its core function of sustaining cocoa production, coupled with operational streamlining to enhance efficiency and restore financial health.
As Ghana’s second-largest export earner after gold, cocoa contributes billions of dollars annually. Analysts warn that without urgent reforms to address production shortfalls and financing bottlenecks, the country risks missing out on the significant opportunities presented by historically high global cocoa prices.
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