Debt Bombshell: COCOBOD Owes GH¢32.5bn, Faces Over $1.3bn Revenue Loss- Mahama Reveals

President John Dramani Mahama has revealed the scale of the financial crisis facing the Ghana Cocoa Board (COCOBOD), describing the institution as heavily indebted and burdened by costly contractual obligations that continue to drain national revenue.

Delivering the State of the Nation Address on February 27, the President told Parliament that COCOBOD’s balance sheet shows a total debt of GH¢32.5 billion, with GH¢9.7 billion scheduled for repayment by the end of September 2025.

The disclosure came as part of a broader assessment of Ghana’s financial position, with public debt currently standing at GH¢721 billion. Several state-owned enterprises are also heavily indebted, including the Electricity Company of Ghana, which owes GH¢68 billion.

President Mahama said COCOBOD’s financial strain has been worsened by supply failures during the 2023/2024 crop season, when the Board was unable to deliver 333,767 tonnes of cocoa that had already been sold at US$2,600 per tonne.

The undelivered volumes were rolled over into the 2024/2025 season, a move that has proven costly as global cocoa prices surged significantly.

According to the President, each tonne supplied under the rolled-over contracts now results in an estimated revenue loss of US$4,000 for COCOBOD and Ghanaian farmers.

So far, the Board has delivered 210,000 tonnes under these contracts, leading to a combined revenue loss of about US$840 million. An additional US$495 million is expected to be lost when the remaining contracts are fulfilled.

The President further revealed that cocoa road projects have added significant pressure to COCOBOD’s financial position. Total cocoa road commitments stand at GH¢21.7 billion, yet only GH¢4.4 billion of this amount is reflected in the Board’s official debt figure of GH¢32.5 billion.

He attributed much of this liability to road contracts awarded in 2019 and 2020, which together exceeded US$1 billion.

President Mahama described COCOBOD as a critical pillar of Ghana’s agricultural economy and the livelihood backbone of cocoa farmers nationwide. However, he warned that the Board’s mounting debt and contract-related losses threaten both institutional stability and farmer incomes.

The revelations highlight deep structural and financial challenges within the cocoa sector — a key export industry that has historically sustained Ghana’s economy and supported hundreds of thousands of rural households.

The government is expected to outline measures aimed at stabilising the sector, restructuring obligations, and protecting farmer earnings as part of broader economic reforms.

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