Ghana’s president-elect, John Dramani Mahama, has pledged to revamp the cocoa sector and reorganise the state-run regulator to stimulate growth and improve efficiency in the world’s second-largest cocoa producer.
In an interview with Reuters on Friday, he criticised the cocoa industry structure where the cocoa marketing board (COCOBOD) competes with farmers for profits.
“Can we have a state enterprise that is the regulator and quality controller, and that creates an opportunity where the farmer is getting his money directly?” Mahama said.
“We will see how to restructure it (COCOBOD).”
The COCOBOD controls all aspects of cocoa production in Ghana – from seedlings to jute bag supplies for packing beans for exports. Previous attempts to break it up have failed.
Mahama said his government would work out the restructuring modalities, hinting at private sector involvement in some areas handled by COCOBOD.
A former president, Mahama secured a decisive victory in the Dec. 7 election, driven by voter dissatisfaction with the rising cost of living, instability and falling production in the country’s key cocoa and gold sectors.
As leader of the National Democratic Congress party, which also secured a wide majority in the parliamentary election, Mahama will take office on Jan. 7, as the economy recovers from its worst crisis in a generation.
Mahama said one of his priorities would be to revamp cocoa and crude oil output to help lift growth and increase non-tax revenue.
Ghana’s cocoa production hit its lowest level in decades last season, dragged down by climate change, tree disease and wildcat gold mining.
Reuters
