Former Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Joseph Boahen Aidoo, has come forward to defend his administration’s decisions amidst criticisms over the GH¢32.5 billion debt incurred by successive governments.
According to Aidoo, the debt was not as a result of mismanagement but rather strategic interventions aimed at safeguarding Ghana’s cocoa industry.
Background
When Aidoo took over COCOBOD in 2017, he inherited a financially depleted institution with no funds for the 2017-2018 cocoa season.
The previous administration had fully utilized the US$1.8 billion syndicated loans, leaving the new administration to look for alternative funding sources.
Aidoo revealed that only 611,763 metric tonnes of cocoa had been secured by December 2016, well below the anticipated 900,000 tonnes.
Strategic Use of Debt
Aidoo’s administration turned to cocoa bills, short-term, high-interest instruments that raised over GH¢2.2 billion.
These funds were channeled into critical purchases of over 355,000 tonnes of cocoa, payments to Licensed Buying Companies (LBCs), logistics, and settlement of outstanding debts for chemicals and fertilizers.
Aidoo emphasized that the debt was an investment in continuity, protecting farmers, the supply chain, and the country’s economic future.
Revenue Generation and Debt Profile
Aidoo urged stakeholders to consider COCOBOD’s size and revenue-generating capacity when discussing its debt profile.
As of February 2025, cocoa purchases had exceeded 560,000 tonnes, valued at approximately GH¢45 billion based on Free On Board (FOB) pricing.
COCOBOD consistently earns over $2 billion in annual cocoa receipts, demonstrating its capacity to meet obligations with structured financing.
Shift in Financing Model
One of the most significant reforms during Aidoo’s tenure was COCOBOD’s decision to forgo syndicated loans in the 2024/25 season, marking a dramatic shift in cocoa financing after 32 years of external borrowing.
Contrary to speculation that Ghana had been disqualified from syndicated funding, Aidoo revealed that financial institutions had offered more favorable terms.
Still, COCOBOD chose to chart an independent course, saving Ghana an estimated $150 million in interest and related fees this year alone.
Growing Threat of Cocoa Smuggling
Despite gains in financial autonomy, Aidoo warned of a growing threat posed by cocoa smuggling, particularly following Côte d’Ivoire’s recent 22.24% increase in producer prices.
This disparity has rendered cocoa farming across the border more lucrative, tempting Ghanaian farmers to sell their beans illegally.
Aidoo estimated that over 120,000 tonnes of cocoa, worth around $600 million, could be smuggled out before any syndicated facility even arrives.
Call for Bipartisan Commitment
Aidoo concluded with a direct appeal to national leadership, urging a bipartisan commitment to safeguarding Ghana’s cocoa sector.
He emphasized that this is not about political parties but about the livelihoods of over 800,000 cocoa farmers, national pride, food security, and economic justice.
Aidoo defended his administration’s actions as necessary, even if unpopular, stating, “We took difficult decisions not because they were easy, but because they were necessary. That is what leadership demands.”
-BY Nadia Ntiamoah
