Cocoa Export Revenues Plunge to Six-Year Low, BoG Data Shows
Ghana’s cocoa export revenues plummeted to $917 million between January and August 2024, marking the lowest level since 2018, according to the Bank of Ghana’s latest Summary of Economic and Financial Data.
This represents a sharp decline from the $1.6 billion recorded during the same period last year—a shortfall of $683 million—that could pose significant challenges to the government’s efforts to stabilize the cedi.
The fall in export earnings continues a downward trajectory that has gripped the sector since its 2021 peak, when cocoa revenues reached $2.1 billion. Subsequent years have seen a steady erosion in returns, with earnings slipping to $1.61 billion in 2022 and $1.6 billion in 2023.
This year’s figure is particularly concerning as it marks the first time in six years that revenues have dipped below the billion-dollar threshold, raising alarm over the health of one of Ghana’s key export sectors.
In parallel, Ghana’s COCOBOD has announced plans to gradually phase out the Cocoa Syndicated Loan—a critical financial instrument that has historically provided liquidity to the sector and supported broader economic stability. The phasing out of the loan could add further strain to the cedi, which has faced volatility amid ongoing fiscal and external pressures.
Recognizing the potential impact of the reduced financial buffer, the Bank of Ghana is pivoting towards its Gold Purchase Program as a strategic alternative. During a recent Monetary Policy Committee meeting, Governor Dr. Ernest Addison indicated that the central bank is positioning gold reserves as a contingency plan, should the cocoa sector’s challenges continue to worsen.
“We are aware that COCOBOD is more or less replacing the syndicated loan, but we think that we have enough reserves from our gold exports as insurance in case things don’t go as expected on the cocoa side,” Dr. Addison stated, signaling a shift towards a more diversified reserve management strategy.
