President John Dramani Mahama has announced an ambitious plan to transform Ghana’s cocoa industry by increasing local cocoa processing to surpass Côte d’Ivoire’s 50% benchmark within five years. This bold commitment signals a major shift in Ghana’s approach to its most valuable agricultural export, moving the country away from a dependence on raw bean exports toward a value-added industrial strategy that could boost job creation, economic growth, and foreign exchange earnings.

Current State of Cocoa Processing in Ghana

Despite being the second-largest cocoa producer in the world, Ghana processes only about 25–30% of its cocoa locally. In contrast, Côte d’Ivoire processes over 50% of its cocoa beans within its borders. Ghana’s total installed cocoa processing capacity is estimated at 544,000 metric tonnes annually, yet much of this potential remains untapped. Notable efforts, such as the recent expansion of Cargill’s processing facility in Tema, which added 20% to its output, highlight that growth is possible when the right investments and policies are in place.

Strategic Reforms and Policy Initiatives

To meet this target, President Mahama outlined several reforms that his administration will pursue. Central to his strategy is a major restructuring of the Ghana Cocoa Board (COCOBOD), which has faced criticism for its soaring administrative costs having tripled in recent years. The aim is to streamline COCOBOD’s operations, cut down waste, and direct more resources into productive areas like processing and farmer support. The government also intends to use policy incentives such as taxes on raw cocoa bean exports to encourage local value addition. Mahama emphasized that these changes will be backed by strong support for private sector investment and innovation, key to scaling up processing capacity nationwide.

Challenges on the Road Ahead

While the plan is ambitious, several challenges could hinder progress. Ghana’s cocoa sector continues to face infrastructural deficiencies, such as unreliable power, poor roads, and limited storage facilities in cocoa-growing regions. Financial constraints are also evident state-run Cocoa Processing Company (CPC) posted a $13 million loss in the third quarter of 2024 alone. Moreover, the sector is under threat from illegal gold mining (galamsey), which is degrading farmland, and from climate change and disease, which are impacting yields. In the 2023/2024 cocoa season, Ghana delayed the delivery of over 370,000 tonnes of cocoa, raising serious concerns among processors and international buyers about supply reliability.

Economic and Social Impact

Despite these obstacles, the potential benefits of increased local processing are immense. Value-added cocoa products such as cocoa powder, butter, and chocolate can fetch up to five times the price of raw beans on the global market. Mahama’s vision could not only help stabilize the cedi by increasing export revenues, but also create thousands of jobs across the cocoa value chain, particularly in rural communities. This would offer economic empowerment for youth and women, while also incentivizing farmers to stay in cocoa cultivation instead of turning to illegal mining or abandoning their farms.

A Vision Within Reach

President Mahama’s promise to exceed Côte d’Ivoire’s 50% processing level within five years is both bold and achievable. It will require determined leadership, coherent reforms, smart investment, and collaboration between government, industry, and international partners. If successful, Ghana could reposition itself from a raw commodity exporter to a global player in the high-value cocoa processing market. This transformation would not only redefine the country’s economic prospects but also serve as a model for industrialization across Africa.

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