The International Monetary Fund (IMF) has projected a challenging financial outlook for the Ghana Cocoa Board (COCOBOD) in 2024, despite some positive results in 2023.

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Although global cocoa prices reached record levels, COCOBOD has faced significant obstacles due to lower-than-expected production during the 2023/2024 cocoa season.

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This production shortfall has impaired the board’s ability to meet its obligations under existing forward sales contracts.

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According to the Ghana Statistical Service, the cocoa industry continues to experience severe setbacks, with a 26% reduction in output in the third quarter of 2024, marking the fifth consecutive quarter of contraction.

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These figures highlight the difficulties faced by the sector in sustaining production levels that would allow it to take full advantage of favorable global market conditions.

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The IMF further noted that Ghana’s forward sales agreements have hindered the country’s capacity to capitalize on rising international cocoa prices.

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This missed opportunity has contributed to the sector’s ongoing struggles.

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In response, the government has taken steps to address these challenges by increasing the farmgate price for cocoa by 50% for the 2024/2025 season.

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This move is intended to reduce the illegal export of cocoa and prevent the conversion of cocoa farms into illegal mining sites.

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The IMF’s latest report also acknowledged the government's ongoing efforts to stabilize the cocoa sector, including the establishment of a dedicated cocoa desk within the Ministry of Finance.

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This initiative is part of a broader strategy aimed at restoring COCOBOD’s financial sustainability and ensuring the long-term viability of the cocoa industry in Ghana.

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