Majority Caucus Rejects Bailout Calls for Cocoa Farmers, Blames Akufo-Addo-Era Borrowing for COCOBOD Crisis
The Majority Caucus in Parliament has firmly rejected demands from the Minority for an emergency bailout to cushion cocoa farmers against falling international prices, instead attributing the sector’s deep financial troubles to reckless borrowing and mismanagement during the previous Nana Akufo-Addo administration.
Addressing journalists at a press conference on Thursday, February 19, 2026, Chairman of Parliament’s Finance Committee, Hon. Isaac Adongo (Bolga Central), accused the former government of leaving the Ghana Cocoa Board (COCOBOD) in severe distress with unsustainable debt levels. He warned that further debt-financed interventions would only compound the problem and threaten the long-term health of Ghana’s cocoa industry.
The Minority had called on the government to provide liquidity support to COCOBOD, enabling prompt payment to the country’s nearly one million cocoa farmers and averting the recently announced 28.6% cut in the farm-gate price—from GH¢48,000 to GH¢33,120 per tonne (a drop of over GH¢1,000 per 64kg bag). The proposal aimed to shield farmers from the impact of volatile global cocoa prices, which have fluctuated sharply in recent months.
Adongo countered that Ghana’s existing debt burden makes additional borrowing from international capital markets unfeasible and irresponsible. He cited figures showing COCOBOD’s loans stood at GH¢17.8 billion at the start of 2025, with total exposure—including other obligations—exceeding GH¢60 billion. “COCOBOD was bleeding with an exposure of over GH¢60 billion. Certainly, that vehicle could not be sustainable and needed to be addressed,” he stated.
In sharp criticism of the Minority, Adongo accused them of advancing “illogical arguments” and likened their push for more debt to “reading the Bible in reverse.” He emphasised that the current administration is focused on “resetting the cocoa sector” through financial discipline rather than short-term, debt-driven handouts.
The Majority Caucus stressed that sustainable solutions lie in systemic reforms, including debt restructuring, improved financial management at COCOBOD, enhanced transparency, and targeted support mechanisms that do not exacerbate the Board’s liabilities. Adongo highlighted ongoing government initiatives aimed at revitalising the sector, such as strengthening COCOBOD’s balance sheet, addressing legacy debts, and implementing measures to boost productivity and farmer incomes without relying on unsustainable borrowing.
The cocoa sector remains a cornerstone of Ghana’s economy, contributing significantly to foreign exchange earnings and rural livelihoods. However, years of high producer prices funded through syndicated loans—coupled with global price volatility, smuggling, and internal inefficiencies—have left COCOBOD heavily indebted and farmers facing reduced earnings.
The government has signalled a shift away from “quick-fix” interventions toward long-term sustainability, with officials indicating that reforms will prioritise fiscal responsibility while protecting vulnerable farmers through non-debt alternatives such as input subsidies, extension services, and value-addition programmes.
