World Bank Flags Financial Risks at COCOBOD
The World Bank has warned that the Ghana Cocoa Board (COCOBOD) faces mounting financial risks despite a favourable global market for cocoa, citing persistent operational inefficiencies and fiscal pressures.
In its latest Ghana Economic Update, the Bank noted that record-high international cocoa prices have failed to translate into stronger domestic production, while COCOBOD continues to carry substantial debts to suppliers. The institution also criticised the agency’s involvement in quasi-fiscal operations outside its core mandate, arguing such activities heighten its financial vulnerability.
“Without corrective measures, these challenges could have broader macroeconomic implications, given cocoa’s pivotal role in foreign exchange earnings and rural livelihoods,” the report stated.
The Bank urged stronger oversight across both the agricultural and energy sectors, and called on COCOBOD to prioritise sustaining production while streamlining operations to bolster efficiency and fiscal health.
Cocoa is Ghana’s second-largest export after gold, generating billions annually. Analysts warn that without swift reforms to address financing and production bottlenecks, the country risks missing out on the windfall from multi-decade high prices.
