Ghanaian cocoa farmers will soon receive a guaranteed price of at least 70% of the world market price for their produce. President John Dramani Mahama announced this new policy. A new bill will soon come before Parliament to make this guarantee legally binding.
The proposed law will also require 50% of Ghana's cocoa to be processed within the country. This move aims to create jobs and add more value to raw cocoa beans. This development ensures farmers benefit fairly from their hard work. President Mahama made this announcement at the 2026 Ghana–European Union (EU) Partnership Dialogue in Accra.
This initiative fits into Ghana’s broader plan to improve its agricultural sector and promote industries. Cocoa is a major export for Ghana, contributing significantly to its economy. Historically, farmers have received a smaller share of global cocoa revenues. This new measure seeks to address this long-standing issue. It also supports the government's drive for industrialisation by increasing local processing.
President Mahama explained the government's aim to transform agriculture. He stressed the importance of increasing returns for farmers. He also mentioned that the Ghana Cocoa Board (COCOBOD) can now raise local funds. These funds will buy cocoa beans for the upcoming crop season. This financial independence reduces reliance on external financing. It helps secure cocoa purchases directly from farmers.
The President highlighted the continuous support from the European Union for Ghana's cocoa sector. This includes efforts to combat the cocoa swollen shoot disease. It also helps strengthen farming sustainability systems. However, he emphasised Ghana’s need to gain more from its cocoa resources. This means more local processing and less export of raw beans.
This policy change will likely impact Ghana’s cocoa market dynamics significantly. Farmers can expect more stable and predictable incomes. This stability could encourage greater investment in cocoa farming. Local processing facilities will see increased demand. This will create more employment opportunities in the industrial sector. Analysts will watch how swiftly the bill passes and its implementation timeframe. Financial markets will also monitor its effect on cocoa export revenues and processing investments. This move could reduce Ghana's vulnerability to volatile global cocoa prices.
Ghana’s drive for local value addition extends beyond cocoa. President Mahama called for Africa to stop exporting raw materials. He urged a focus on adding value and industrialisation. This strategic shift aims to maximise economic benefits from natural resources. The EU Ambassador to Ghana, Mr. Rune Skinnebach, noted European business challenges in Ghana. These include permit delays and customs bottlenecks. The government's focus on local processing may address some of these issues by creating a more integrated domestic supply chain.