The Ministry of Finance has introduced a reform in the producer price determination mechanism aimed at enhancing efficiency and financial viability within Ghana’s cocoa industry.
At the heart of these efforts is the implementation of a new pricing system based on Free-on-Board (FOB) prices.
This reform seeks to better align local cocoa prices with global market fluctuations, thereby reducing financial shocks to the Ghana Cocoa Board (COCOBOD).
Speaking at the first Quarterly Economic Roundtable, Dr. Alhassan Iddrisu, the Director of Economic Strategy and Research Division at the Ministry of Finance, highlighted the encouraging results from ongoing reforms in the domestic cocoa industry.
“That’s the way to go, so when there are volatilities in the prices, they are reflected immediately into the pricing regime – reducing any shock to the books of COCOBOD,” Dr. Iddrisu explained.
He also indicated that another key reform, which involves COCOBOD phasing out road construction activities, is showing positive outcomes.
“The consensus is that there’s a Ministry of Roads, and the ministry is a better place to do some roads than COCOBOD itself.”
This shift has already led to significant cost reductions. Dr. Iddrisu noted, “The huge COCOBOD Roads expenditures that were hitting the books of COCOBOD have been rationalised and reduced significantly.”
