"Gov’t to enforce 50% minimum local processing of cocoa from 2026/2027" – Finance Minister

Cabinet has directed that a minimum of 50 per cent of Ghana’s cocoa beans be processed locally beginning from the 2026/2027 crop season, Finance Minister Dr. Cassiel Ato Forson has announced.

Addressing the media on Thursday on far-reaching reforms in the cocoa sector, Dr. Forson said the directive forms a central pillar of government’s strategy to promote value addition, create jobs and strengthen the financial position of the Ghana Cocoa Board (COCOBOD).

According to him, the policy will be backed by legislation, as the new COCOBOD Bill to be presented to Parliament will make local processing of at least half of the country’s cocoa output mandatory.

“This will ensure that Ghana moves beyond exporting predominantly raw beans and instead maximises value from its cocoa through increased domestic processing,” Dr. Forson stated.

As a transitional measure, the Finance Minister disclosed that Cabinet has directed that the remainder of cocoa beans for the 2025/2026 crop year be allocated to domestic processors with immediate effect.

He revealed that earlier on Thursday, he and the Minister for Trade, Agribusiness and Industry met with domestic cocoa processing companies, including private sector operators, who expressed readiness to process more than 50 per cent of Ghana’s cocoa production going forward.

An agreement, he said, had been reached for the immediate implementation of the policy shift toward increased local processing.

Dr. Forson announced that the state-owned Cocoa Processing Company (CPC) will be revived as a matter of priority to position it as the leading processor of Ghana’s cocoa beans.

In addition, the Produce Buying Company (PBC) will be revitalised to resume full operations and become the leading licensed buying company in the cocoa sector under a new financing framework.

He explained that the reforms are designed to restore indigenous participation in the cocoa value chain, which had been weakened under the existing financing model.

Dr. Forson indicated that a new financing model for cocoa purchases will take effect from the 2026/2027 crop season, replacing the current system that relied heavily on buyer pre-financing arrangements.

He said the previous syndicated loan model required COCOBOD to sell forward large volumes of raw beans to secure loans, limiting the country’s ability to optimise prices and constraining domestic processing because raw bean contracts were used as collateral.

Under the new arrangement, bonds will be used to raise a revolving fund, while domestic cocoa beans will be leveraged to finance purchases and repayments within each crop year.

The revised model, he noted, will enable COCOBOD to sell beans of any volume to local processing companies without being restricted by forward sales obligations.

Dr. Forson stressed that the new COCOBOD Bill will prohibit quasi-fiscal and non-core expenditures, including road construction, which Cabinet identified as a major contributor to COCOBOD’s financial distress.

He reiterated that the 50 per cent local processing requirement is part of a comprehensive reform agenda aimed at restoring financial stability, improving transparency, and ensuring long-term sustainability in the cocoa sector.

“The objective is clear — to stabilise COCOBOD, protect farmer incomes, promote value addition, and create jobs through increased domestic processing of Ghana’s cocoa,” Dr. Forson said.

Story by: Joshua Kwabena Smith