DEVELOPMENT DISCOURSE with Amos SAFO: Gov’t is prioritizing gold over cocoa

Based on recent occurrences in the cocoa and gold sectors it appears that President John Mahama’s government has prioritized gold over cocoa. Instead of addressing the structural and financial issues confronting the cocoa sector, the government rather established a new Goldbod that is receiving more attention than cocoa. Prior to establishing Goldbod, the Previous Minerals Marketing Company (PMMC) had the mandate to purchase gold on behalf of the government.

No motivation

Many people argue that it was a misplaced policy priority to set up the Goldbod, while there was already the PMMC that was overseeing the sector.  Moreover, the monopoly Goldbod and its partner Bawagold have in purchasing and marketing gold abroad has raised more questions than answers. Obviously, the hunger for gold Goldbod to purchase more gold from small-scale miners has raised the demand for gold. The high demand for gold is the driving force behind the decline of cocoa production. It could also be the reason why several cocoa farmers are selling their cocoa farms to illegal miners.

To many cocoa farmers, there is no motivation to keep their farms when the government has failed to pay for the beans it purchased four months ago. As if that was not enough, the government also slashed the previous price of GHS3100 to GHS2587 per bag of cocoa. These and many more justify concerns by cocoa farmers that government had deliberately sacrificed cocoa for gold. What is currently unfolding points to the fact that government has positioned gold at the center of its strategy to stabilize the Cedi.

Finance Minister Dr. Cassiel Ato Forson has highlighted the “Goldbod” initiative (a variation of the previous administration’s gold-for-oil forex policy) as a strategy to control gold exports and increase foreign exchange reserves. Based on recent data (2024–2025), gold has become  more significant to Ghana’s economy in terms of export revenue, GDP contribution, and foreign exchange earnings.

While cocoa has been historically recognized as the backbone of Ghana’s economy, the sector is currently undergoing a “crisis” with falling production and significant debt. Recently, the government announced several policy interventions to rehabilitate the sector, to increase production to one million metric tons and to increase the producer price, however, recent occurrences in the sector indicate the government’s lack of interest in revamping the sector.   The government has rather focused on making mining the dominant economic pillar, despite its negative impact on Ghana’s water and forests.

Below is a breakdown of the significance of the two commodities based on data from 2024 and early 2025:

1. Gold: The leading economic driver

Gold is currently Ghana’s top export, contributing far more to the national treasury and trade balance than cocoa.

• Export Earnings: In 2024, gold generated roughly GH?163 billion (55.3% of total export revenue), while cocoa and its products brought in about GH?21.55 billion (8.4% of total export revenue).
• 2025 Growth: In the first four months of 2025, gold export earnings rose to $5.2 billion, compared to $1.8 billion for cocoa, cementing gold’s position as the primary foreign exchange earner.
• Economic Impact: The gold sector, along with oil, is a major driver of GDP growth (accounting for about 7% of GDP).

2. Cocoa: The social and historical pillar

While gold leads in sheer monetary value, cocoa remains critically significant for employment and social stability, especially in rural areas.

• Employment & Livelihood: Cocoa supports a vast number of smallholder farmers and rural communities than gold
• Performance Challenges: The cocoa sector has faced significant challenges, including disease and poor weather, leading to a contraction in production in 2024, though it staged a recovery early in 2025.
• Contribution: While a major foreign exchange earner, its relative contribution to total exports has fallen behind both gold and oil.

While the Goldbod initiative is a top priority for foreign exchange and currency stability, the government is dragging its feet on reviving the struggling cocoa sector. To put it bluntly, the government has not been truthful to cocoa farmers. The Finance Minister Dr. Ato Forson who oversees the cocoa sector has argued that though the price per bag of cocoa has been slashed Ghana’s prices were still higher than those of Ivory Coast, which is the world’s leading cocoa producer. A recent report published by the Ivorian News Agency stated that the price per ton of cocoa was CFA 179,200 or the equivalent of $5060. Compared with Ghana’s price per bag of GHS 2587 per bag or GHS4392 per ton. This is a clear indication that the Ivorian farmers are enjoying higher prices than their Ghanaian counterparts. This means that Ghana’s finance minister lied to the farmers and Ghanaians. How can a government resort to using propaganda as a communications strategy, rather than being transparent to the people who gave it power?

Insincerity

The current government’s insincerity to cocoa the sector dates to 2016, when it was in power. In 2016, it borrowed $1.8 billion to buy 850,000 tons of cocoa and by January 2017 when it left power, the new Akufo-Addo government discovered that there was a shortfall of 350,000 metric tons of cocoa was yet to be bought, yet all the $1.8 billion had been blown. The new administration found it imprudent to return to the same banks to borrow more money to purchase the remaining 350,000. The new government resorted to Bank of Ghana to issue cocoa bills to raise money for that purpose. Apart from that it has been revealed that the past government left a whopping GHS 3.6 billion outstanding debt of constructed cocoa roads. Prior to that between 2012 and 2013 cocoa bills had been borrowed from the Bank of Ghana, but were later converted into ten-year bonds, whose interests were due for payment in addition to the principal.

At the same time in early 2017, the price of ton of cocoa dropped to $3,000 and by August that year, it further declined to as low as $1800 per ton. This occurred at the time farmers were being paid GHS450 per bag. The Akufo-Addo government was faced with reducing the price per bag or maintaining it, in the face massive drop on the world market. Face with this difficulty, President Akufo-Addo directed the management of Cocoa Board to pay the farmers the existing price. His decision was based on the fact that cocoa farmers have been the backbone of the economy dating to the precolonial days to the current dispensation. Akufo-Addo was optimistic that as a commodity that has inelastic demand, in future the prices of cocoa could rise for the government to recoup its gains.

Poor communication and strategy

Experts have pointed out that managing communications in such a sensitive sector requires reflection and strategic thinking. Cocoa, like oil, is so volatile that any alarming communication tends to cause fear and panic, resulting in price reductions. Thus, the recent announcement by the CEO of Ghana Cocoa Board, Dr. Randy Abbey that Ghana had failed to purchase 50,000 tons of cocoa caused fear and panic on the global world market. Experts say since he made that announcement world market per ton of cocoa dropped from $4000 to $3600 and could further drop. His statement implied that there was a higher supply of cocoa than demand, and anytime supply exceeds demand prices naturally tumble, as buyers adopt a wait and see attitude. In other words, the moment production levels of a volatile commodity like cocoa are published in the media, it automatically affects prices.

One of the major reasons why some analysts think the government has deprioritized cocoa is the alleged suggestion by the CEO of Cocobod that the organization should sponsor the Ghana football. Suggesting that farmers’ money should be used to sponsor football at the time the government had failed to pay them is imprudent and insensitive. Additionally, the CEO is reported to have suggested that Cocobod should consider sponsoring sports fans to Canada and USA to support the Black Stars. How on earth could anyone moot the idea that Cocobod should use farmers’ money to sponsor Black Stars supporters, at the time the government owed the farmers millions of cedis. In my view no serious organization should be associated with Black Stars, whose brand has deteriorated.  How about investing in water and irrigation infrastructure in cocoa districts to boost cocoa yield? How about establishing cocoa colleges, as NDC promised to train agricultural extension officers to support cocoa farmers. How about the timely release of funds to buy cocoa as the NDC promised in its manifesto?

Farmers demonstration

In response to the failure of government to pay their arears and the reduction in the price per bag, several cocoa farmers, mostly old men and women from the cocoa districts converged at the premises of the Ghana Cocoa Board to demand the payment of their beans and the reversal of the price reduction. A placard carried by one of the aggrieved farmers read, “government celebrates, but our families mourn.” Many of the farmers told journalists they regretted going into cocoa farming, judging from the current government’s attitude to the sector and its failure to honour the numerous promises it made to them. The plight of the farmers explains why young people have abandoned farming in general and have migrated to urban centres to look of greener pastures. Regrettably, cocoa which was a livelihood to thousands of Ghanaians is gradually losing its role as a greener pasture.

The government and the management of the Cocobod are simply joking with the livelihoods of cocoa farmers, whose sacrifice sustained Ghana’s economic growth for decades. It does not make sense buying several four-wheel vehicles for official use while farmers are starving and unable to pay their children’s school fees. This is clear case of misplaced economic priorities. Maybe, the purchase of over hundred vehicles was motivated by rent seeking by the current management of Cocobod.

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