As part of efforts to stabilise Ghana's cocoa sector, the government, following a Cabinet meeting, has announced ten key reforms for the industry.

These reforms come at a time when Ghana's cocoa sector has faced criticism and concerns over delayed payments to farmers. Farmers have expressed frustration, warning that the financial strain is not only affecting livelihoods but also impacting their health.

Understanding FOB in Ghana’s cocoa sector

The Minister of Finance, Dr Cassiel Ato Forson, on Thursday, February 12, 2026, revealed that these reforms are designed to strategically position the sector, cover financial losses, and increase production capacity and value addition.

Here are 10 key reforms announced by Cabinet for the cocoa sector:

1. Repayment of all outstanding arrears owed cocoa farmers:

Cabinet, following a crunch meeting on Wednesday, February 11, 2026, directed the Ghana Cocoa Board (COCOBOD) to begin paying all affected cocoa farmers in the country who have not been paid for the 2025/2026 crop season.

2. Automatic producer price adjustment to align with global market prices:

As part of the government's broader efforts to safeguard the sector, Cabinet will introduce a new Cocoa Bill with a 70% FOB price guarantee, which will reflect movements in the world market price, exchange rate, and other key variables, while guaranteeing a minimum of 70 percent of the gross FOB price to be paid to cocoa farmers.

3. New cocoa financing model:

The government will replace the outdated 32-year-old syndicated loan model and the failed buyer-led model of 2024 with a new system using domestic cocoa bonds for the 2026–2027 season.

4. Forensic audit and criminal investigation of COCOBOD:

Cabinet has directed the Attorney General to audit and investigate COCOBOD’s activities over the past eight years.

5. Reviving PBC and CPC:

The government is advancing plans to revive the Cocoa Processing Company (CPC) to be the leading cocoa processing company in the country, as well as the Produce Buying Company (PBC).

6. Conversion of GH¢5.8 billion legacy debt into equity:

To strengthen COCOBOD’s balance sheet, GH¢5.8 billion in legacy debt owed to the Ministry of Finance and Bank of Ghana will be converted to restore positive equity.

7. Transfer of GH¢4.35 billion road liabilities to the Roads Ministry:

Cabinet has directed that COCOBOD’s GH¢4.35 billion in road construction liabilities be transferred to the Ministry of Roads and Highways and the Ministry of Finance, relieving the board of non-core financial burdens.

8. Cost-cutting measures:

The Ministry of Finance will implement immediate reforms to curb wasteful and uncontrolled expenditure at COCOBOD, improving financial discipline and operational efficiency.

9. Mandatory processing of 50% of locally produced cocoa:

From the 2026–2027 season, a minimum of 50% of all cocoa beans must be processed locally. For the remainder of the 2025–2026 season, all remaining beans will be allocated for domestic processing.

10. Syndicated loan replacement with domestic cocoa bonds:

Cabinet has announced a new domestic bond financing scheme to replace the syndicated loan and buyer-financed arrangements for cocoa purchases.

SP/MA

FULL SPEECH: Finance Minister announces reforms for Ghana's cocoa sector