Mahama’s Gh¢855m ‘Hamper’ For Cocoa Farmers

In a decisive move to calm unrest in Ghana’s cocoa industry, the government has released GH¢855 million to settle long-standing arrears owed to farmers, following months of delayed payments that threatened the livelihoods of producers nationwide.

The announcement was made by Mr. Isaac Adongo, Chairman of Parliament’s Finance Committee.

Mr Isaac Adongo explained that the payment is part of an emergency intervention to stabilise the cocoa sector and restore confidence among farmers and licensed buying companies.

“The bottom line is that some amounts were owed to cocoa farmers and the government took a decision to repay those monies, so that the cocoa buying companies can settle their outstanding obligations.

“I’m happy to report that this morning, the government has released 855 million cedis for that purpose,” he told journalists.

The release comes alongside a comprehensive reform package aimed at restructuring the Ghana Cocoa Board (COCOBOD) and putting the sector on a more sustainable financial footing. Among the reforms is a controversial reduction of over GH¢1,000 per bag in the producer price, a move that has ignited debate across the industry and prompted intense discussions among lawmakers, farmers and market analysts.

“The cocoa sector has been under enormous strain over the years and we have been pretending to service cocoa farmers while destroying the very vehicle we use to support them,” the Chairman of Parliament’s Finance Committee said, defending the government’s approach as tough but necessary.

Mr Isaac Adongo blamed the financial crisis largely on the previous New Patriotic Party (NPP) administration, arguing that COCOBOD entered 2025 heavily indebted and financially distressed.

“COCOBOD entered 2025 with about GH¢17.8 billion in loans, plus significant operational liabilities. Total exposure exceeded GH¢60 billion. That vehicle could not be sustainable and had to be addressed,” he said.

“You have 60 billion of somebody’s money, it’s not free money. You are not paying and yet you are saying we should continue to borrow more,” Mr. Adongo added, highlighting the unsustainable financial practices inherited by the current government.

The Finance Committee Chairman emphasised that the dual strategy of immediate payments and structural reforms is intended to protect farmers in the long term, stabilise operations and rebuild COCOBOD into a financially viable institution, capable of sustaining Ghana’s cocoa economy.

“These reforms are long overdue. Without decisive action, the sector’s underlying financial challenges would continue to jeopardize both farmers’ livelihoods and Ghana’s cocoa revenue base,” he warned.

The intervention marks one of the most high-profile government responses to the cocoa sector’s recent turmoil, as political, financial and business stakeholders watch closely to see whether the reforms will restore trust and stabilise what remains one of Ghana’s most critical export industries.

 

 

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