The proposed COCOBOD Bill, 2026 seeks to overhaul the legal and financial framework governing Ghana’s cocoa industry, with reforms targeting farmer incomes, debt management, local processing, financial oversight and sector governance.
For nearly four decades, Ghana’s cocoa sector has operated primarily under the Ghana Cocoa Board Act, 1984 (PNDCL 81), alongside several other laws introduced at different periods to address specific aspects of the industry.
However, the accumulation of multiple and overlapping statutes has created what proponents of the new legislation describe as a fragmented and outdated legal framework.
The proposed Bill seeks to consolidate the existing laws into a single framework designed to strengthen governance, improve financial management and position Ghana’s cocoa industry to respond to changing global market and sustainability requirements.
The reforms come against the backdrop of challenges including declining cocoa production, smuggling, rising sector debt and limited domestic value addition.
The Bill, if passed, will affect Ghana’s more than 800,000 cocoa-farming households.
Here are 10 key economic and financial reforms contained in the proposed legislation:
1. Farmers to receive at least 70% of FOB price
One of the major proposals is a statutory guarantee that cocoa farmers receive at least 70% of the Gross Free on Board (FOB) price earned by COCOBOD in every crop season.
The provision would establish a legal minimum for producer prices rather than leaving the percentage primarily to policy decisions.
It is also intended to strengthen the connection between international cocoa prices and the incomes of farmers who produce the crop.
2. COCOBOD to return under Finance Ministry
The Bill proposes placing COCOBOD under the oversight of the Ministry of Finance, following a policy directive issued in 2025.
COCOBOD’s oversight had previously been transferred to the Ministry of Food and Agriculture as part of reforms introduced in 2017 and formalised in 2020.
The proposed move reflects COCOBOD’s significant role in public finance, particularly its reliance on borrowing, syndicated financing and other debt instruments to fund cocoa purchases and operations.
3. Cocoa Sector Debt Sinking Fund
The proposed legislation provides for the establishment of a Cocoa Sector Debt Sinking Fund to settle verified historical liabilities accumulated within the cocoa sector.
The Fund would be financed through parliamentary appropriations, asset recovery proceeds, surcharges and negotiated settlements.
The account would operate within the Treasury Single Account framework.
4. Legacy cocoa debts to be ring-fenced
The Bill proposes separating debts incurred before the new law takes effect from COCOBOD’s ongoing operations.
The Finance Minister would be empowered to resolve the liabilities through measures including debt restructuring, special purpose vehicles, negotiated settlements and debt set-offs.
The objective is to clean up COCOBOD’s balance sheet without compromising farmer payments or the Authority’s ability to finance cocoa purchases.
5. Stricter controls on COCOBOD borrowing
The proposed legislation would significantly restrict COCOBOD’s borrowing powers.
Borrowing would be limited to activities directly connected to cocoa production, marketing, price stabilisation and value addition.
Officials who authorise borrowing outside the permitted purposes could face fines ranging from 15,000 to 30,000 penalty units, imprisonment of between five and 10 years, and a possible 10-year disqualification from holding public office.
6. 50% local cocoa processing target
The Bill places greater emphasis on domestic value addition by proposing regulations requiring at least 50% of Ghana’s cocoa production to be processed locally over a transitional period.
To support the target, COCOBOD would be required to improve access to cocoa beans, provide financing support, establish appropriate pricing mechanisms and introduce incentives for local processors.
The measure is intended to increase the value Ghana derives from cocoa before export.
7. Ban on speculative transactions
COCOBOD would be prohibited from engaging in speculative or highly leveraged financial transactions that could expose public funds to excessive risk.
Hedging activities would instead be guided by a formal Cocoa Price Risk and Hedging Policy.
Directors and officers responsible for unauthorised transactions that result in financial losses could face personal liability through surcharge and recovery proceedings.
8. Producer pricing to receive legal backing
The Bill seeks to give statutory recognition to the Producer Price Review Committee, which has traditionally advised on cocoa producer prices without an explicit legal foundation.
Giving the Committee a formal mandate is expected to strengthen transparency and accountability in the pricing process and improve confidence among cocoa farmers and other stakeholders.
9. New Cocoa Stabilisation and Diversification Fund
Another major proposal is the establishment of a Cocoa Stabilisation and Diversification Fund, financed through a percentage of cocoa export proceeds.
The Fund would support farmer income protection, productivity-enhancing investments, climate-resilience measures and interventions during periods of significant volatility in international cocoa prices.
The mechanism is intended to provide a structured response to future market shocks while supporting long-term productivity and resilience within the sector.
10. Easier access for small processors
The proposed legislation also seeks to lower barriers facing small-scale cocoa processors, chocolatiers and businesses producing cocoa-based products.
It proposes more flexible licensing and regulatory requirements for smaller operators, potentially enabling more businesses to participate in cocoa processing and value addition.
The broader objective is to promote entrepreneurship, encourage innovation and widen participation in an industry traditionally dominated by larger players.
If enacted, the COCOBOD Bill, 2026 would represent a significant restructuring of the legal and financial architecture of Ghana’s cocoa industry, with particular emphasis on farmer incomes, debt sustainability, financial discipline and increasing the amount of cocoa processed locally.
