News
Coalition: New producer price too low, it will kill cocoa industry

The Coalition for Cocoa Sector Reforms (CCSR) has called on government through Ghana Cocoa Board (COCOBOD) to reconsider the 2022/23 producer price announced to avoid negative implications the new GH¢800 per bag of cocoa beans will have.
It said farmers over the last two decades were always assured of over $100 out of the world market price for each bag of cocoa sold through the FOB pricing mechanism used in setting the price for the commodity.
Therefore, the Coalition described as unfortunate and surprising the less than $80 (GH¢800) that government awarded to farmers this year for a bag of cocoa
The group said this is rather a decrease in producer price than an increase hence COCOBOD must come again adding that in these times of increasing inflation, prices of inputs, fuel and economic hardship, this treatment to hardworking cocoa farmers must change.
A statement jointly signed by Mr Ayisi Kumah Thomas Kwesi-President, and Mr Hedidor Alexander Yaw-Secretary of the coalition respectively said the producer price announced by the Minister of Food and Agriculture was not only low but demotivating and should therefore be reviewed.
It said the analysis carried out by the Coalition showed that further reduction of Cocoa price was a disincentive to cocoa farmers and would lower productivity, given the fact that both Cost of living and Cost of production had increased astronomically in Ghana, owing to inflation and rapid depreciation of the cedi against the Dollar.
It said hopes of cocoa farmers will be shattered by the new price especially when neighbouring Ivory Coast who had comparatively maintained relative stable currency and economy.
“It is clear and beyond all doubts that with this lowering of cocoa prices (dollar terms), Government and COCOBOD will render Cocoa farming unattractive to the youth by worsening the economic plight of cocoa farmers.
“Cocoa farmers are already impoverished and overwhelmed by our current economic situation and to further reducing the price of Cocoa will worsen their plight.
“This is an industry that has supported this country for over 30 years with revenue from exports, but there seems to be a clear lack of foresight or an ill-will in the management and sustenance of the sector by its current managers –COCOBOD,” it added.
The statement said the decision of reducing cocoa price (in dollar terms) came in the midst of reports of cocoa farmers selling their arable land to illegal mining operatives (Galamsey).
The statement said about 19,000 acres of cocoa lands were lost to galamsey activities last year and it would not be surprising that the figure would be tripled in the ensuing year, while cocoa beans would be further smuggled along the border towns, with farms receiving little or no investments.
It said the credibility of COCOBOD in acquiring future loans will be impaired and eventually the industry would suffer existential threat and called on government to review the current situation
“We believe that any government interested in discouraging smuggling, fighting against galamsey, increasing annual cocoa volumes, and improving the lives of its gallant cocoa farmers should rather increase prices to discourage negative tendencies and sustain the economy.
“Before the dust could settle on the topic of this Cocoa price reduction, BOG came with a hike in monetary policy rate to tighten the economy”.
“This came after drawing down on the $1.13bn syndicated cocoa loan to be used to shore up its Forex reserves and stabilize our currency. The hike in monetary policy rate will directly or indirectly increase lending rates, the cost of goods and services including cost of cocoa inputs. Closure of shops in Kumasi and the intentions of GUTA to also close shops in Accra is evident of an expected increased cost of living which farmers cannot escape”.
It said the once revered cocoa industry that had pillared the country for over three decades and hitherto provided dignified living conditions to its farmers, purchasing clerks, and District
Managers of Licensed Buying companies (LBC’s), Depot Keepers, and Port Officers, are suffering an imminent collapse if good measures were not taken.
“In this period of rising youth unemployment, it will be sad to witness the collapse of another vibrant sector of our economy and we, therefore, call on all stakeholders in the supply chain to throw their weight behind CCSR GH to compel government and COCOBOD to review the price or come out with a bonus package.
“Though the significant depreciation of the cedi has been a major contributory factor to the degrading economic fundamentals, the dichotomy is that increased exchange differential gives government room to relieve cocoa farmers with a higher producer price for the season. The voices of Cocoa farmers must be heard for if there’s No cocoa, there will not be COCOBOD.
It is feared that the price gap between Ghana and Ivory Coast will lead to smuggling into Ivory Coast this 2022/203 cocoa season as Ghanaian farmers are expected to take advantage of higher prices in the neighbouring country.
The price of cocoa in Ivory Coast is higher than that of Ghana fueling speculation of possibly smuggling of the commodity by Ghanaian farmers.
Though Ghana raised the producer price for 2022/2023 cocoa season by 21%, far higher than the nine percent in Ivory Coast, the price per bag in Ghana is GH₵800 which is GH₵50 lower than the GH₵850 per bag in Ivory Coast.
The sharp depreciation of the cedi this year is said to be the reason the price per bag is higher in Ivory Coast despite that country raising farmgate price by just nine per cent compared to the 21% increase by Ghana.
The Ghana cedi plunged nearly 40% versus the dollar since the beginning of the year.
900 CFA franc per bag in Ivory Coast
Ivory Coast was the first to raise its cocoa producer price per bag by nine per cent from 825 CFA franc to 900 CFA franc.
The cedi equivalent of the 900 CFA franc per bag of cocoa weighing 64 kilogramme gross is GH₵850.
The CFA franc is the common currency of the 14 African countries belonging to the Franc Zone.
A week later, Ghana raised the producer price of cocoa by 21% to GH₵800 per bag for the 2022/2023 season effective October 7, 2022.
GH₵12,800 per metric tonne
This translates into GH₵12,800 per metric tonne up from GH₵10,560 in the 201/2022 cocoa season.
The increase represents 89.99% of FoB price
The producer price represents 89.99% of the net Free on Board (FOB) value.
People have been illegally transporting, or smuggling, cocoa beans between Ivory Coast and neighboring Ghana for many years.
As long as buyers in Ivory Coast will pay more for Ghana’s higher-quality beans, the smuggling is likely to continue.
Cocoa smuggling between Ghana and Ivory Coast is quite common, with its direction shifting back and forth depending on the price difference between the two countries.
Economic woes have hurt farmers, who say basic operational costs, including the price of farm inputs such as fertilizer, chemicals have risen sharply some as high as 300%.
Under Ghanaian law, farmers are only allowed to sell their beans to purchasing clerks who act as intermediaries between them and Ghana Cocoa Board (COCOBOD).
$400 Living Income Differential
Ivory Coast and Ghana teamed up and agreed to sell cocoa with a living income premium of $400 a tonne added to the price, in a bid to reform the way global cocoa is priced.
Forward sale of 80% of cocoa beans
Ghana and Ivory Coast, which account for about 60% of global cocoa output, typically sell about 80% of the main harvest before the beginning of every season, a system which allows it to lock in prices and set the minimum pay for farmers.
Two-cycle cocoa season in Ghana
The country operates a two-cycle cocoa season, consisting of the main crop, which is mainly exported to Europe at a premium, and a light crop harvest, which is discounted by around 20% to local grinders.
Over 2m small-scale farms in both countries
Over two million small-scale farms in Ivory Coast and Ghana produce nearly 60% of the world’s supply of cocoa.
Ghana, Ivory Coast get only $5.75bn out of $100bn chocolate market
While the two countries contributed to more than 60% of the world’s cocoa output, their total earning from the sale of cocoa beans amounted to a paltry $5.75 billion whereas the chocolate market was worth some $100 billion in that same year.
Ghana, Ivory Coast produce 60% of world’s cocoa
It means that the farmers whose toil and sweat produced 60% plus of the world’s cocoa earned 5.75% of the global value of their activity.
Nestlé’s annual sales dwarfs GDP of Ivory Coast and Ghana
According to the World Bank, Ivory Coast and Ghana have combined gross domestic product (GDP) of $69.3 billion, a figure dwarfed by Nestlé’s $90 billion in annual sales or a market cap of around $250 billion.
London and New York terminal markets
London and New York terminal markets, using mechanically programmed formulas, determine the price of cocoa.
Cocoa sector contributes 4.22% to GDP
The cocoa sector contributes 4.22% of gross domestic product (GDP), 30% of Ghana’s export earnings.
- VALCO workers asking for dollar indexed salaries untenable – 4 November 2022
- 2022 Fuel price increases: Petrol-94%, diesel-136% in 10 months – 19 October 2022
- Coalition: New producer price too low, it will kill cocoa industry – 18 October 2022
News
Soldier slaps policeman provoking violent clash in Accra Central

A violent scuffle ensued between Police and Military personnel near the Accra Regional Police Command yesterday creating fear and panic among the public.
An eye witness told The Finder that the scuffle was provoked by members of a military patrol team escorting a bullion van who slapped a police personnel not in uniform for not giving them way.
The eye witness who spoke on condition of anonymity explained that upon the bullion van reaching the Ghana Cocoa Board (COCOBOD) area, the soldiers in the patrol vehicle screamed at a motor rider to give them way.
The eye witness said the motor rider responded that he is a police officer and this response infuriated the military personnel.
The eye witness told this paper that one soldier alighted from their vehicle and slapped the policeman who was not in uniform.
The police officer quickly raise alarm and his colleagues at the Accra Regional Command premises rushed to his rescue.
According to the eye witness, the police personnel then detained the military personnel who slapped the police man.
The soldiers escorting the convoy attempted to resist the arrest of their colleague resulting in violent scuffle.
As at the time of going to press, details were still emerging but The Finder could not get the names of the police personnel slapped and the military personnel involved in the assault.
The Police and Military could not be reached immediately for their response.
The Finder learnt that the soldier was granted bail yesterday evening.
The conflict between the military and police is not uncommon in Ghana and in most cases, it the soldiers who attack the police.
In 2010 for instance, tensions flared between soldiers and police officers in Kumasi, when separate assaults carried out by soldiers within two days left 12 police personnel injured and police property destroyed.
The attacks began after a police officer attempted to arrest a soldier riding an unlicensed motorcycle.
In 2019, police personnel and some soldiers clashed at the Suame Roundabout in Kumasi.
This was after some police officers allegedly manhandled a plain-clothed military officer and handcuffed him.
The plain-clothed military officer was using an unregistered motorbike.
The military officer also called his other colleagues, who then attacked the police officers.
The soldier threatened to return with reinforcements and attack the police officer and made good on the threat later that day.
Over the next two days, more than a dozen police officers across the city were assaulted by soldiers.
In 2018, some soldiers and police officers in the Upper East region flexed muscles Sunday in a row over a military uniform.
In the same year, a group of soldiers angry over the arrest of their colleague stormed Tamale in the Northern Region and viciously pummeled police officers on duty at various points and banks.
Personnel of the Counter Terrorism Unit of the Ghana Police Service and personnel of the Military on the Operation Motherland at Juapong and on the Adomi bridge also clashed in 2021.
There has been a long-standing split tension between police and soldiers which some security experts partly blames on the outdated nature of the security legislation governing their operations.
Due to some of these disagreements between police and military personnel in the past, there have been calls for reform to establish clear oversight mechanisms and delineate security roles for the police and armed forces in Ghana.
Among the resolutions arrived at were the setting up of Police and Military memberships in all regions that host military bases, ‘for the purposes of overseeing the peaceful co-existence of both services,
The personnel are the custodians of arms meant to protect and defend ordinary people and not to attack each other.
It appears there is a deep seated animosity between personnel of the two institutions.
It is untenable for them to turn the area into a battleground to settle personal scores.
- VALCO workers asking for dollar indexed salaries untenable – 4 November 2022
- 2022 Fuel price increases: Petrol-94%, diesel-136% in 10 months – 19 October 2022
- Coalition: New producer price too low, it will kill cocoa industry – 18 October 2022
Finance
Kamala Harris: US to engage Ghana’s creditors for debt reduction

Vice-President of the United States of America Kamala Harris pledged the commitment of her country to engage the Paris Club of behalf of Ghana which is seeking debt forgiveness as part of the International Monetary Fund’s (IMF) balance of payment support.
According to her, the US will help Ghana with all the support it needs to ensure that it scales through its current economic crisis.
US fully support Ghana’s engagement with IMF
She indicated that the US is fully in support of Ghana’s engagement with the IMF and will push for debt reduction by the country’s bilateral creditors.
Biden administration to push for meaningful debt reduction
She insisted that the Biden administration “will continue to push for all bilateral creditors to provide meaningful debt reduction for countries that needed including Ghana.”
“We must work together as an international community to ease the debt burden that is facing far too many countries,” she added.
Joint Press Conference
The US Vice-President announced this at a joint Press Conference with President Nana Addo Dankwa Akufo-Addo, at Jubilee House, Accra, after closed door discussions.
3-day state visit
Harris, who arrived in Ghana on Sunday for a three-day state visit, is on a week-long trip on the African continent that would take her to Tanzania and Zambia.
US pledges support for economic recovery
She expressed the commitment of US to supporting Ghana to revamp its post-COVID-19 and Russia-Ukraine conflict impacted economy.
“We welcome Ghana’s commitment to reform its economy for sustainable and inclusive growth. “We support Ghana’s engagement with the IMF, and we will continue to push all bilateral creditors to provide meaningful debt reduction for countries that need it.
“It is critical to do so to build long-term economic growth and prosperity and to increase US investments. Our partnership is already strong, and I believe that today we have strengthened it,” she stated.Harris believes this will enable Ghana successfully negotiate the bailout it is seeking from the IMF.
Factors that adversely affected Ghana’s macroeconomy
The COVID-19 pandemic, rising global food prices, rising crude oil and energy prices; and the Russia-Ukraine war adversely affected Ghana’s macroeconomy, with spillovers to the financial sector.
Combination of adverse external shocks
The combination of adverse external shocks had exposed Ghana to a surge in inflation, a large exchange rate depreciation and stress on the financing of the budget, which taken together have put public debt on an unsustainable path.
$54bn total public debt stock
Ghana’s total public debt stock stands at $54 billion, out of which $28 billion is owed to foreign creditors.
Ghana owes China $1.9bn
Out of Ghana’s $8.5 billion bilateral loans, about $1.9 billion is owed to China.
$3bn staff-level agreement reached in December 2022
In December 2022, the government reached a staff-level agreement with the fund and is now left with board-level approval before it can access the $3 billion support.
America’s investment in wellbeing and prosperity of people
Harris assured that the US stands by its commitment to building on existing relations with Ghana, and working together to advance America’s investment in the wellbeing, health and prosperity of the people,” she stated.
US resident advisor to assist Finance Ministry
According to her, the Department of Treasury’s Office of Technical Assistance (OTA) will deploy a full-time resident advisor to assist the Ministry of Finance to develop and execute medium-to-long-term reforms needed to improve debt sustainability and support a competitive, dynamic government debt market.
Building on debt restructuring efforts
The project, according to the USA will complement and build on Ghana’s debt restructuring efforts.
To further support Ghana’s debt management, USAID is funding fellowships for a team of ten specialists to work within the Ministry of Finance, providing surge support for a two-year period.
The Fellows are all young, qualified Ghanaians and recent university graduates.
Strengthening public financial management
This project is part of OTA’s ongoing engagement to strengthen public financial management and financial sector oversight across sub-Saharan Africa.
For 2023, OTA will execute 25 projects in 15 African countries.
This includes eight new projects in Cameroon, Ghana, Kenya, Madagascar, Namibia, Tanzania, The Gambia, and Zambia in revenue policy and administration; budget and financial accountability; government debt issuance and infrastructure financing; banking and financial services; and economic crimes.
$100m to fight violent extremism and instability
The US Vice-President also announced the US government plans to commit $100 million support package for Ghana, Benin, Guinea, Cote d’Ivoire and Togo, as part of efforts to promote stability in the sub-Region.
At least $86 million in funding over three years will specifically be dedicated to the implementation of the new 10-year plan.
The package forms part of President Joe Biden’s strategy to cushion the beneficiary countries financially to address violent extremism and instability.
The package, the U.S., Vice President explained, complemented an earlier strategic plan announced by President Joe Biden, for coastal West Africa, to prevent conflict and promote stability.
Harris praises President Nana Akufo-Addo
Harris praised President Nana Akufo-Addo for his leadership in response to recent democratic backsliding in West Africa and standing up for democratic principles around the world.
“Under your leadership, Ghana has been a beacon of democracy and a contributor to global peace and security,”
“Your leadership in particular and personal engagement have strengthened the ties between the diaspora and the continent. President Joe Biden and I are grateful to have you as a partner,” she said.
Strengthening partnerships across the African continent
The US Vie-President said the United States was strengthening partnerships across the African continent and “we are guided not by what we can do for Africa, but by what we can do with Africa and African partners on this continent.”
African voices critical to global peace and security
With African nations playing significant roles in global issues such as food security, climate crisis and resilient supply chains, she stressed that African voices, including that of Ghana, “are critical to global peace and security, including the defence of the United Nations charter.”
President Akufo-Addo says meeting was successful
President Akufo-Addo described his meeting with the US Vice-President as “successful,” as both sides reaffirmed the commitment to collaborate further and provide mutual support at both bilateral and multilateral levels.
He said Harris pledged America’s support for Ghana’s transformative agenda, adding, “it is this transformation that would give us the best opportunity to derive maximum benefit from our abundant natural resources and enable us to create a firmer foundation for a meaningful long-term economic and commercial relations with the United States of America.”
The President said Ghana will continue to collaborate with the US at all levels towards the peaceful resolution of conflicts and in the search for global peace and security to promote sustainable development and growth
“My meeting with the US Vice-President this afternoon has further boosted the steadfast cooperation between the two countries,” he affirmed.
He pointed out that although he was concerned about terror groups, he had no formal confirmation that al-Qaida was present in Ghana.
On a question on the operations of the Russian mercenary force, Wagner, in the region, President Akufo-Addo said he worried that the group could expand its footprint in West Africa.
“It raises the very real possibility that once again our continent is going to become the playground for a great power conflict,” Akufo-Addo said.
The President also rejected concerns about China’s influence in the region, insisting that Ghana’s relations with were separate from one another, and said the ties with America “is a relationship that has been close over several decades.”
Ghana determined to add value to its abundant natural resources
President Akufo-Addo said the country was determined to add value to its abundant natural resources in order to lift the economy from dependence on foreign aid to a self-reliant one.
Harris inspects a guard of honour
On her arrival at the Jubilee House, Harris inspected a guard of honour mounted by the Ghana Airforce, and took the national salute, whilst a 21-gun salute boomed in the background.
President Akufo-Addo met her at the foyer of the Presidency, where the two exchanged pleasantries and retired to the ceremonial room for a tete-a-tete.
Both parties reaffirmed the strengthening of the relations and long-standing ties between the peoples of Ghana and the United States and affirmed their resolves to bolster those bonds of friendship and cooperation.
The two leaders, with their delegations, held bilateral talks, where discussions centred on a range of global and regional issues, including democracy, good governance, and human rights; regional security; long-term economic growth and macroeconomic stability.
Harris and her husband, Douglas Emhoff, were hosted at a State Banquet at the Jubilee House by President Akufo-Addo in the evening.
- VALCO workers asking for dollar indexed salaries untenable – 4 November 2022
- 2022 Fuel price increases: Petrol-94%, diesel-136% in 10 months – 19 October 2022
- Coalition: New producer price too low, it will kill cocoa industry – 18 October 2022
Finance
Ofori-Atta says creditors agree to form Committee on Ghana

Finance Minister Ken Ofori-Atta, has disclosed that Ghana has made significant progress in its discussions for debt treatment with the Paris Club and other bilateral creditors.
Official Creditor Committee
According to him, the Paris Club, together with other creditors including China, India, Saudi Arabia, and Turkey have agreed to form an Official Creditor Committee (OCC) on Ghana.
IMF Executive Board approval possible in May
He revealed that the Committee plans to deliver financing assurances to the International monetary Fund (IMF) as soon as possible to clear the path for an IMF Executive Board approval of Ghana’s programme by early May.
Positive engagements with China and Paris Club
Disclosing the outcome of engagements with China and Paris Club last week, Mr Ofori-Atta said discussions with the Chinese government on the country’s debt restructuring programme have been positive.
China to Co-chair the Official Creditor Committee
Mr Ofori-Atta, who led a high level government delegation made up of technical officials from the Ministry of Finance, the Ministry of Foreign Affairs and the Bank of Ghana. to China last week, also requested for China to Co-chair the Official Creditor Committee.
$54bn total public debt stock
Ghana’s total public debt stock stands at $54 billion, out of which $28 billion is owed to foreign creditors.
Ghana owes China $1.9bn
Out of Ghana’s $8.5 billion bilateral loans, about $1.9 billion is owed to China.
$3bn staff-level agreement reached in December 2022
In December 2022, the government reached a staff-level agreement with the fund and is now left with board-level approval before it can access the $3 billion support.
Ghana seeking extension of maturities, debt servicing, lower interest rates
Information indicates that Ghana is seeking among other reliefs, an extension of the moratorium on debt servicing; an extension of maturities; and lower interest rates.
China expresses confidence in management of Ghana’s economy
The Finance Minister of China, Mr. Liu Kun, on his part said that his country has confidence in the management of the Ghanaian economy, and that his country felt a responsibility to be of help as Ghana seeks debt servicing relief.
At a meeting in Beijing, Mr. Kun said the Chinese authorities “have confidence in Ghana’s economic management and its long term economic viability.”
Expeditious treatment of Ghana’s request
Mr. Kun said he wanted to ensure that Ghana’s external debt treatment request was considered expeditiously and was thus accompanied to the meeting with Mr. Ofori-Atta by a high level delegation including Mr. Wu Fuli, Chairman of China Exim-Bank.
Committed to resolving challenges
Minister Kun said: “We know that these are short-term challenges which we, as responsible creditors, remain committed to resolving.”
Long standing and prosperous relationship
“The long standing and prosperous relationship between Ghana and China imposes on us a responsibility to help,” the Chinese Finance minister added.
Exogenous forces impacting Ghana’s economy
He said that just like other African countries, Ghana was facing economic difficulties from a once in a lifetime pandemic, geopolitical tensions and interest rates hikes in advanced countries with a contagion effect on developing countries.
The Chinese officials committed to help Ghana resolve the current short-term liquidity challenges and continue to support Ghana’s medium and long-term development aspirations.
China to push for more concessional and grant funding for Ghana
They said China believed in promoting debt sustainability and sustainable development, and would advocate for more concessional and grant funding for Ghana, especially at this time.
Multilateral Banks should do more for Ghana
“Ghana needs more concessional and grant fund from creditors,” said Mr. Zhang Wencai, Vice-President of China Exim bank, adding that “the Multilateral Banks should therefore do more for Ghana.”
Revenue bills in parliament
This week, all eyes are on Ghana’s parliament which will consider three key revenue measures whose approval is expected to rake in GH₵4.4 billion in domestic revenues.
It is one of the major actions on the part of Ghana, critical to trigger IMF Executive Board approval of a $3 billion facility for the country to ease its current economic difficulties.
- VALCO workers asking for dollar indexed salaries untenable - 4 November 2022
- 2022 Fuel price increases: Petrol-94%, diesel-136% in 10 months - 19 October 2022
- Coalition: New producer price too low, it will kill cocoa industry - 18 October 2022
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