The Deputy Minister of Finance, Thomas Ampem Nyarko, says the Ghana Cocoa Board (COCOBOD)’s indebtedness to suppliers of fertilizers and agrochemicals between 2021 and 2024 reflects deeper structural and financial challenges within the cocoa sector rather than an isolated lapse.
Speaking on the floor of Parliament, Mr. Ampem Nyarko explained that the sector is grappling with fiscal pressures rooted in procurement decisions that, in previous crop seasons, significantly exceeded approved budget allocations.
He disclosed that for the 2021–2022 crop year, COCOBOD procured agrochemicals worth about US$455.7 million, against a budgetary provision of US$312.8 million.
According to him, the pressure intensified in subsequent years as procurement continued despite outstanding arrears owed to suppliers.
“The agrochemicals procured for the 2021–2022 season were not paid for, but COCOBOD continued to procure additional quantities in 2022, 2023, and 2024, all of which were above the budgeted amount in each year,” he told Parliament.
The Asuogyaman MP further revealed that in the 2023–2024 season alone, COCOBOD budgeted US$76.5 million for agrochemicals but contracted supplies valued at about US$668.6 million, a gap he said raises serious concerns about procurement planning and fiscal discipline in the sector.
He noted that the widening mismatch between expenditure and cocoa production trends has also drawn attention from stakeholders.
“While procurement of fertilizers and agrochemicals was increasing, cocoa production was declining, raising questions as to what these fertilizers and agrochemicals were used for,” he stated.
Mr. Ampem Nyarko, however, maintained that COCOBOD’s current indebtedness should be viewed within the context of inherited systemic challenges affecting the cocoa value chain.
He said government is now implementing reforms aimed at restoring financial stability in the sector and ensuring COCOBOD is able to meet its obligations in a sustainable manner.
“COCOBOD is approaching the issue systematically. The strategy is to restore its financial capacity so that it can honour its obligations to all creditors, including agrochemical dealers, in a sustainable and transparent manner,” he explained.
He added that the broader objective of ongoing reforms is to fix structural inefficiencies and ensure predictable, transparent, and timely payments to suppliers going forward.
“Government is fixing the system so that suppliers are paid not once, but always, predictably, transparently, and on time,” he assured.
The remarks come amid heightened scrutiny of COCOBOD’s financial position and renewed calls for tighter oversight of procurement practices within Ghana’s cocoa industry.