Ghana earned more from cocoa exports in 2024, despite a sharp decline in the volume of beans shipped, according to the Auditor General’s latest report on the Bank of Ghana’s foreign exchange performance for the year ending December 31, 2024.

Comparatively, Ghana exported less cocoa in 2024 than it did in 2023, about half as many raw cocoa beans and fewer processed cocoa products like butter, paste, and powder.

However, despite the decline in exports, Ghana still made more money from cocoa exports, about 37.5% more in 2024 than the previous year. The increase in earnings despite the decline in the export of beans last year has been attributed to the increase in prices of cocoa on the global level, and the fair sales of processed cocoa products still sold fairly well.

A major concern stated in the report was the decline in inflows from syndicated cocoa loans. The report noted that in 2024, Ghana’s inflows from syndicated cocoa loans dropped dramatically, from US$681 million in 2023 to just US$50 million. This represents a staggering decline of over 92 percent, and the US$50 million received was not even part of the usual pre-export financing package. Instead, it came from non-collateralised loan proceeds used to pay interest on Ghana Cocoa Board’s (COCOBOD) existing debt.

The sharp drop in loan money shows that it is now harder to get funding and that COCOBOD chose to buy cocoa with its own money for the 2024/2025 season. This is a big change, because for the past 32 years, COCOBOD has always used syndicated loans to pay for cocoa purchases.

The report also explained that the US$50 million wasn’t from the usual loan arrangement that Ghana uses to support cocoa exports. Instead, it came from a different type of loan that wasn't backed by collateral, and it was mainly used to pay interest on COCOBOD’s debt.

The Bank of Ghana anticipated about US$1 billion earnings from cocoa in 2024, but actually earned US$1.73 billion, which is over US$734 million more than expected. This marks a 73% increase in cocoa earnings over its 2024 forecast. Cocoa contributed 14.47 percent of Ghana’s total foreign exchange earnings of US$11.99 billion in 2024. The decline in production volumes despite the rise in earnings raises questions about long-term sustainability.

As good as the increase in earnings appears, it is temporary, as concerns have been raised about an unexpected decline in cocoa prices on the global level, which is expected to potentially affect how the sector would perform if prices drop and output levels remain low. The fall in syndicated loan inflows also points to tighter financing conditions for Ghana’s cocoa industry. Without strong investment in production and support for farmers, stakeholders worry the gains made in 2024 may not last.

Cocoa contributes significantly to Ghana’s GDP, export earnings, and employment. In some years, it has accounted for over 25% of merchandise export revenue and 4.5% of total GDP. The sector directly supports over 800,000 farm families, and indirectly sustains millions more through transport, processing, and trade. It also plays a key role in rural development, with COCOBOD investing in schools, clinics, and infrastructure in cocoa-growing areas.

In May this year, Finance Minister Dr. Cassiel Ato Forson, during the inauguration of an eleven-member Board of Directors for the Ghana Cocoa Board (COCOBOD), announced the government’s plans to introduce plantation farms by acquiring about 200,000 hectares of cocoa land.

This, he said, is aimed at restoring cocoa production levels to 1 million metric tonnes. Per reports, the country's cocoa production has declined to a little above 500,000 tonnes in 2024.

“Cocoa has always been the mainstay of our economy, and that must not change. Unfortunately, massive mismanagement in recent years has led to a worrying downturn in both production and financial stability. It is time to act decisively," the minister said.

Finance Minister Dr Ato Forson tasked the board to decisively address the issue of diseased cocoa farms, especially in the Western Region, which continues to hamper productivity. Also, as part of measures to promote the country’s cocoa sector, the Ghana Cocoa Board, in July, in collaboration with the European Union, the Food and Agriculture Organisation, and other stakeholders, launched the Ghana Cocoa Monitor.

The monitor will check duplication of sustainability programmes, ensure transparency, and build trust among the government, civil society, the private sector, and farmers. It will also support efforts at tackling challenges such as child labour, deforestation, and climate change in the cocoa sector. This platform will promote a more collaborative approach to tackling challenges facing the cocoa sector and provide real-time insights for informed decision-making on cocoa sustainability.

Recently, Barry Callebaut Chief Executive Officer Mr. Peter Feld reaffirmed his company’s longstanding collaboration with COCOBOD and emphasised the importance of strengthening ties in a bid to sustain the cocoa industry.

He also highlighted key concerns, including price stability, continuous business development, and the crucial need for consistent cocoa and chocolate exports to support the global supply chain. He called for renewed support for smallholder farmers, whom he described as “the backbone of the industry”, and advocated for deeper partnerships that will empower farmers and sustain cocoa production in the face of rising threats.

Mr. Feld further raised concerns over the growing menace of illegal mining, which continues to encroach on cocoa farmlands and urged both institutions to critically address the issue, warning that it poses a significant risk to the future of cocoa cultivation and livelihoods

“There must be a strong partnership between Barry Callebaut and COCOBOD to ensure the sustainability of the industry. The need to protect cocoa farms from destructive mining activities cannot be overemphasised,” he stated.

In response, COCOBOD’s Chief Executive, Dr. Randy Abbey, assured the Barry Callebaut delegation of the board’s unwavering commitment to partnership and transparency. “There is nothing to be sceptical about. Our interest is the same, the sustainability of the cocoa industry,” he said.

On July 6, the Ghana Cocoa Board (COCOBOD) revealed that in June and July, its anti-cocoa smuggling task force made significant strides in cracking down on the activities of syndicates involved in cocoa smuggling. The two months saw the seizure of some 216 bags of cocoa beans that were being smuggled across the border to Togo.

This was possible due to four separate operations at Zebila and Bolga in the Upper East Region. The most recent activity led by the task force was on Saturday, July 5. The task force intercepted 15 bags of cocoa beans at Maame Wata in the Asuogyaman District of the Eastern Region, also bound for Togo.