The Concerned Farmers Association of Ghana (CFAG) has raised an urgent alarm over the worsening financial crisis affecting the Ghana Cocoa Board (COCOBOD), putting Ghana’s cocoa industry at risk.
In a dramatic call for action, CFAG is demanding a state of emergency to address the dire situation, urging the government, industry stakeholders, and international partners to intervene before the sector collapses.
Farmer General Nana Oboadie Boateng Bonsu, the convener of CFAG, highlighted the severity of the crisis in a statement released on August 22, 2024. “COCOBOD, the entity responsible for buying cocoa from our farmers, is grappling with severe financial troubles,” the statement read. “This crisis jeopardizes the livelihoods of over 800,000 cocoa farmers, many of whom rely solely on cocoa for their income.”
The CFAG warns that COCOBOD’s inability to purchase cocoa due to its financial woes could spell disaster for the entire industry, which plays a vital role in Ghana’s economy. A 2020 COCOBOD study estimates that the average annual income for a cocoa farmer is around GHS 2,500 (approximately $400 USD). According to the International Cocoa Organization (ICCO), Ghana’s cocoa sector represents about 20% of the nation’s GDP.
The current financial instability threatens not only the farmers’ livelihoods but also Ghana’s broader economic stability. To counter this crisis, CFAG proposes creating a Cocoa Bank, which would be funded by a nationwide fundraising campaign with a target of $5 billion. This new institution would secure the necessary funds to purchase cocoa from farmers, ensuring fair prices and stabilizing the industry.
CFAG calls on the government, political parties, stakeholders, and the international community to support this critical initiative. The association has even requested that political parties suspend their campaign activities to focus on resolving this urgent crisis.
CFAG believes that a united front is essential to safeguard the future of Ghana’s cocoa industry and protect the many lives that depend on it.
