IMF pushes for COCOBOD reforms to cut costs

The International Monetary Fund says Ghana must strengthen the legislative framework governing the Ghana Cocoa Board to reduce operational costs, improve efficiency, and ensure the long-term financial sustainability of the cocoa sector.

The recommendation was contained in a statement issued by an IMF staff team led by Ruben Atoyan following a mission to Accra from April 29 to May 15 for discussions on Ghana’s 2026 Article IV consultation, the sixth and final review of the Extended Credit Facility programme, and the government’s request for a non-financing Policy Coordination Instrument.

According to the Fund, priority should be placed on reforms that streamline costs within Cocobod, including more frequent farmgate price adjustments to better reflect market conditions.

The IMF said such measures are necessary to improve efficiency within Ghana’s cocoa sector and strengthen the financial position of Cocobod amid growing operational and financing pressures.

“Priority should be given to strengthening the legislative framework to streamline costs, including through more frequent farmgate price adjustments, improve efficiency, and ensure Cocobod’s long-term financial sustainability,” Ruben Atoyan said.

The recommendation comes as Ghana’s cocoa industry continues to face challenges, including the recent delayed cocoa payments to farmers which triggered government cocoa sector reforms.

Cocoa remains a major foreign exchange earner for Ghana and a key source of income for many farming households.

Source: Citi Business News