Jinapor urges cost-cutting measures at COCOBOD

Minister of Energy and Green Transition, John Jinapor, has voiced deep concern over the sharp decline in cocoa production and the rising debt burden within the sector.

Addressing the inauguration of an 11-member board of directors for COCOBOD, Jinapor highlighted that the sector’s debt has ballooned from GH₵400 million in 2017 to a staggering GH₵2.6 billion—a development he described as alarming and deserving of urgent attention.

“COCOBOD, just like the energy sector, has been in the news for some disturbing reasons. From a debt of 400 million in 2017, the debt is now projected at 2.6 billion, which is very worrying, and all of us ought to be very concerned about the state of COCOBOD,” he said.

He also lamented the drop in cocoa production, which, according to him, has declined from about one million metric tonnes in 2016/2017 to roughly 500,000 metric tonnes, and is continuing on a downward trajectory.

“Around 2016/2017, cocoa production hit around one million. Now it’s declined to around 500. That is quite worrying and is even going down further, just like oil production,” he noted.

Jinapor urged the new board to prioritise cost-cutting measures and operational efficiency, staying true to COCOBOD’s core mandate.

“A trim in costs, bringing about efficiency and deal particularly in what COCOBOD was established to do. That is to ensure that we increase cocoa production and add value to our cocoa,” he said.

He explained that the inclusion of key financial leaders, such as the Finance Minister and the Governor of the Bank of Ghana, on the board is meant to enhance fiscal discipline.

“The presence of the finance minister and the Governor of BoG, Dr Johnson Asiama, is to check fiscal slippages, which can affect its monitoring side. So you ought to ensure that there is a high level of discipline,” he explained.

Expressing confidence in the newly constituted board, Jinapor said: “With the calibre of people on this board, I’m very confident that we will turn the sector around.”

The new COCOBOD board is chaired by Dr. Samuel Ofosu Ampofo, Policy Advisor at the Office of the Vice President, and includes Dr. Johnson Asiama, Governor of the Bank of Ghana, and Dr. Cassiel Ato Forson, the Minister for Finance.

Source: Citi Business News