The Majority Caucus in Parliament has unveiled a sweeping financial “reset” of the Ghana Cocoa Board (COCOBOD), announcing a monumental GH¢855 billion liquidity injection to settle long-standing arrears owed to cocoa farmers and Licensed Buying Companies (LBCs).
At a high-stakes press briefing held on Thursday, February 19, 2026, the Member of Parliament for Bolgatanga Central, Isaac Adongo, provided a sobering assessment of the Board’s financial health. He cited years of operational inefficiencies and “excessive debt accumulation” between 2017 and 2024 as the primary drivers of the current crisis. Adongo emphasized that the government’s immediate priority is to rebuild the trust of the Ghanaian farmer by closing the significant funding gap that has hampered the industry for years.
”The government has initiated a comprehensive reset of the cocoa sector to restore financial stability and reposition COCOBOD as a disciplined commercial institution capable of sustaining national output,” Adongo stated.
To address the “structural weaknesses” inherited from the previous administration, the government has moved aggressively to clean up COCOBOD’s balance sheet. Of a GH¢1.8 billion loan previously secured from the African Development Bank, the current administration has successfully repaid GH¢1.2 billion within a single year. Furthermore, the government has moved to settle GH¢165 million out of GH¢209.5 million in accrued interest from various international institutions.
In a move to strengthen the Board’s long-term position, a GH¢1.3 billion 10-year Bank of Ghana loan, which existed as a principal debt when the previous government left office has been converted into equity. This recapitalization effectively relieves COCOBOD of GH¢65.7 million in interest obligations, shifting the entity from a debt-burdened state to a more stable commercial footing.
Hon. Adongo was also critical of past management practices, alleging that previous officials “overestimated” cocoa production figures to secure syndicated loans. He noted that projections of 800,000 metric tonnes were used to attract financing, yet actual production fell significantly short. This discrepancy reportedly created a repayment crisis that forced the government to secure an additional $70 million loan just to address the shortfall.
The Majority Caucus noted that records indicate former Finance Minister Dr. Mohammed Amin Adam had issued several directives urging the repayment of these obligations, yet the debts remained unsettled until the current administration took action.
He concluded by adding that under the leadership of President John Dramani Mahama, the government has now converted an additional GH¢1 billion into equity to ensure the long-term sustainability and value-addition goals of the cocoa sector.
Story By: Eugenia Osei
