The Majority Caucus in Parliament has raised significant alarms regarding the precarious financial state of the Ghana Cocoa Board (COCOBOD), emphasizing an urgent need for substantial working capital to ensure its survival. This critical concern was prominently highlighted during a press briefing on February 19, 2026.

Isaac Adongo, Chairman of Parliament’s Finance Committee and Member of Parliament for Bolgatanga Central, disclosed the immense liquidity gap, stating, “COCOBOD requires over GH¢30 billion in working capital for it to survive, not the GH¢60 billion left behind. If you look at the accounts, you realise that there is a big hole in there.” This figure underscores the gravity of the financial challenge, with Peter Boamah Otokunor, Director of the Presidential Initiative in Agriculture and Agri-Business, further alleging that COCOBOD’s debt burden under the previous New Patriotic Party (NPP) government had exceeded the institution’s total assets.

A core component of the financial strain has been attributed to alleged gross mismanagement during the former Nana Akufo-Addo administration, particularly concerning logistical decisions related to jute sacks used for cocoa packaging. Mr. Adongo claimed that COCOBOD had approximately 286,000 bales of jute sacks at the ports but cleared only 91,000, leaving a significant quantity uncleared. Compounding this, he alleged that the previous administration authorized the procurement of an additional 80,000 bales at a reported cost of GH¢48 million shortly before leaving office. Dr. Otokunor echoed these concerns, detailing how imported sacks from 2021 were warehoused while subsequent consignments ordered in 2022, 2023, and 2024 were left uncleared at the port, with a further $48 million in letters of credit issued for new imports just four days before the general elections. Both described these decisions as imprudent, arguing that such actions deprived the state of funds that could have been channeled into supporting cocoa farmers and directly contributed to the industry's financial difficulties.

In response to this severe financial pressure, COCOBOD has initiated several stringent measures. The Board announced cost-cutting strategies, including a 20 per cent salary cut for its executive management and a 10 per cent reduction for senior staff. These reductions, which have already taken effect, are projected to remain in place for the remainder of the 2025/26 crop season, with an estimated saving of about GH¢5 million each month. Beyond immediate cost reductions, the government is actively pursuing broader structural reforms aimed at stabilizing COCOBOD's balance sheet.

Key reform initiatives include seeking parliamentary approval to convert a substantial GH¢5.8 billion legacy debt owed to the Bank of Ghana and the Ministry of Finance into long-term financial instruments. Additionally, road-related liabilities amounting to GH¢4.35 billion are slated for transfer to the Ministry of Roads and Highways and the Ministry of Finance. To address the critical working capital deficit, Sagnarigu MP Atta Issah disclosed the government's intention to raise approximately GH¢30 billion through a syndicated domestic bond. This strategic shift away from the currently unfavorable international financial market leverages Ghana’s strengthened balance sheet post-debt restructuring and restored investor confidence, as evidenced by oversubscribed treasury bill issuances. Mr. Issah expressed optimism that a well-structured bond issuance could secure the necessary liquidity and pave the way for lasting reforms within the cocoa sector, citing successful similar financing models in countries such as Côte d’Ivoire, Ecuador, Brazil, and Nigeria.

The Majority Caucus has firmly pushed back against demands for an emergency bailout for cocoa farmers, arguing that Ghana’s cocoa sector cannot sustain further borrowing. Isaac Adongo highlighted that loans alone amounted to GH¢17.8 billion at the beginning of 2025, contributing to an overall exposure exceeding GH¢60 billion, which he deemed unsustainable. He criticized proposals for additional loans, stating, “They are advising us to add debts when we cannot even pay GHC60 billion. We’re resetting the cocoa sector.” The government under President John Dramani Mahama insists that its reforms will prioritize debt restructuring, improved financial management, transparency, and targeted interventions to protect farmers, thereby ensuring the long-term sustainability of Ghana’s vital agricultural sector amidst rising operational costs, funding constraints, and increased public scrutiny over cocoa pricing and COCOBOD’s financial management.