Majority Caucus Raises Alarm Over COCOBOD’s Financial Strain, Announces GH¢855 Billion Debt Settlement and Reforms The Majority Caucus in Parliament has expressed concern ove

Majority Caucus Raises Alarm Over COCOBOD’s Financial Strain, Announces GH¢855 Billion Debt Settlement and Reforms The Majority Caucus in Parliament has expressed concern over the financial condition of the Ghana Cocoa Board (COCOBOD), citing a significant funding gap in the Board’s accounts. Speaking at a press conference on Thursday, 19 February 2026, the Member of Parliament for Bolgatanga Central, Hon. Isaac Adongo, revealed that substantial amounts were owed to cocoa farmers. He stated that the government has released GH¢855 billion to enable cocoa buying companies to settle outstanding debts owed to farmers. According to him, the government has also introduced a series of long-overdue reforms aimed at restructuring the cocoa sector. He noted that the sector has suffered enormous financial strain over the years due to operational inefficiencies, excessive debt accumulation, and structural weaknesses, particularly between 2017 and 2024. Hon. Adongo explained that in February

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Published on 02/23/2026 07:12

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Majority Caucus Raises Alarm Over COCOBOD’s Financial Strain, Announces GH¢855 Billion Debt Settlement and Reforms

The Majority Caucus in Parliament has expressed concern over the financial condition of the Ghana Cocoa Board (COCOBOD), citing a significant funding gap in the Board’s accounts.

Speaking at a press conference on Thursday, 19 February 2026, the Member of Parliament for Bolgatanga Central, Hon. Isaac Adongo, revealed that substantial amounts were owed to cocoa farmers. He stated that the government has released GH¢855 billion to enable cocoa buying companies to settle outstanding debts owed to farmers.

According to him, the government has also introduced a series of long-overdue reforms aimed at restructuring the cocoa sector. He noted that the sector has suffered enormous financial strain over the years due to operational inefficiencies, excessive debt accumulation, and structural weaknesses, particularly between 2017 and 2024.

Hon. Adongo explained that in February 2026, the government initiated a comprehensive reset of Ghana’s cocoa sector to restore financial stability, rebuild confidence among cocoa farmers, and reposition COCOBOD as a disciplined commercial institution capable of sustaining national output and promoting value addition.

He further disclosed that the previous government secured a GH¢1.8 billion loan from the African Development Bank. Of that amount, the current government has repaid GH¢1.2 billion within a year. He added that interest accrued on loans from the African Development Bank and other institutions amounted to GH¢209.5 million, out of which GH¢165 million has been paid.

Additionally, he indicated that a 10-year Bank of Ghana loan, with a principal of GH¢1.3 billion at the time the previous government left office, has been converted into equity to recapitalise COCOBOD. This move, he said, is intended to strengthen the Board’s financial position. The interest in that facility, amounting to GH¢65.7 million, has also been relieved through the recapitalization process.

Hon. Adongo also criticised the previous administration for overestimating cocoa production figures when securing syndicated loans. He claimed that projections of 800,000 metric tonnes were used to attract financing, but actual production fell short, leading to repayment challenges. As a result, the government reportedly had to secure an additional $70 million loan to address the shortfall.

He stated that records show the former Finance Minister, Dr. Mohammed Amin Adam, wrote several letters urging repayment of the obligations, but the debts remained unsettled.

According to Hon. Adongo, under the leadership of President John Dramani Mahama, the government has converted an amount equivalent to GH¢1 billion into equity to improve COCOBOD’s financial standing and ensure long-term sustainability of the cocoa sector.

Report by PKB