The Majority Caucus in Parliament has pushed back against demands for an emergency bailout for cocoa farmers, insisting that Ghana’s cocoa sector cannot sustain further borrowing.
The Caucus attributes the financial strain facing the Ghana Cocoa Board (COCOBOD) to what it describes as excessive debt accumulated under the administration of former President Nana Akufo-Addo.
Addressing journalists on February 19, the Chairman of Parliament’s Finance Committee, Isaac Adongo, said the sector was left in severe financial distress, making new debt-financed interventions imprudent.
His remarks were in response to calls from the Minority urging the government to provide liquidity support to cushion farmers against falling international cocoa prices and a 28 per cent reduction in the producer price.
The Minority had proposed that emergency funds be released to enable nearly one million cocoa farmers to receive timely payments and to prevent a drop of more than GH¢1,000 per bag. However, Mr Adongo argued that Ghana’s debt exposure makes additional borrowing from international capital markets unrealistic.
“Loans alone were GHC17.8 billion at the beginning of 2025. And if you add this to other obligations, you will realise that at this point, COCOBOD was bleeding with an exposure of over GH¢60 billion. Certainly, that vehicle could not be sustainable and needed to be addressed,” he stated. He further criticised proposals for additional loans, saying,
“They are advising us to add debts when we cannot even pay GHC60 billion. We’re resetting the cocoa sector.”
The Majority maintained that restoring fiscal discipline and restructuring the cocoa industry offer a more durable path forward than short-term bailouts.
According to Mr Adongo, government reforms will focus on debt restructuring, improved financial management and targeted interventions to protect farmers while securing the long-term sustainability of Ghana’s flagship agricultural sector.
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Source: www.myjoyonline.com
