President Mahama Announces Shift to Prioritise Local Cocoa Processing and Reduce Raw Bean Exports
President John Dramani Mahama has signalled a major policy shift in Ghana’s cocoa sector, announcing plans to prioritise local processing and reduce heavy reliance on raw bean exports.
Speaking to the Ghanaian community in Philadelphia on Thursday, March 26, 2026, the President said the recent sharp decline in international cocoa prices — which forced the government to cut the producer price from GH¢3,625 to GH¢2,587 per bag — should serve as a wake-up call for the country.
“It is because for almost seventy years after we gained independence, we’re still exporting raw beans to the world… what has happened in the international market should be a wake-up call for us,” he stated.
Key Policy Changes
President Mahama revealed that the government is reforming the financing model for cocoa purchases. Instead of depending on international traders who traditionally pre-finance the sector and use cocoa beans as collateral, Ghana will now mobilise its own resources to buy cocoa directly from farmers.
“Now, we say we are going to raise the money ourselves and buy our own cocoa… if we raise our money and buy our cocoa, it is not collateral to anybody, and so we can decide what to do with it,” he explained.
A significant portion of the cocoa beans purchased will be allocated to local processors to boost domestic value addition before export.
“We are saying that we are going to allocate the bulk of our cocoa to local processors to process that cocoa before we export it,” the President added.
Rationale Behind the Shift
The President noted that exporting mostly unprocessed cocoa beans has limited Ghana’s ability to capture greater value from one of its most important commodities. By increasing local processing capacity, the country aims to create more jobs, generate higher revenue, and better shield farmers and the economy from volatile global price shocks.
This new direction aligns with the government’s broader industrialisation agenda and efforts to add value to Ghana’s natural resources.
The announcement comes amid growing discontent among cocoa farmers following the recent producer price cut and reflects the administration’s commitment to long-term structural reforms in the sector.
Source: Address by President John Dramani Mahama to the Ghanaian community in Philadelphia
