Parliament has passed the Ghana Cocoa Board Bill, 2026, paving the way for the most comprehensive overhaul of the legal, financial and governance framework of the Ghana Cocoa Board (COCOBOD) in more than four decades.
The new legislation repeals the existing Ghana Cocoa Board Act, 1984 (PNDCL 81), and introduces a modern regulatory framework to strengthen COCOBOD’s financial sustainability, improve corporate governance, enhance transparency and safeguard the welfare of cocoa farmers.
A major feature of the new law is the introduction of a comprehensive financing framework that seeks to reduce unsustainable borrowing, ring-fence legacy debt, strengthen financial discipline and ensure that borrowing is undertaken strictly for cocoa production, marketing, value addition and price stabilisation. The Bill also requires COCOBOD to operate on sound commercial principles while remaining accountable to Parliament and the Minister responsible for Finance.
To improve financial resilience, the legislation establishes a Cocoa Sector Debt Sinking Fund to manage validated legacy debts and a Cocoa Stabilisation and Diversification Fund to cushion producers against international price shocks and finance productivity-enhancing investments across the cocoa value chain.
The Act also strengthens cocoa price risk management by requiring COCOBOD to adopt a formal Cocoa Price Risk and Hedging Policy, supported by a specialised Cocoa Risk and Hedging Committee to oversee hedging transactions, improve transparency and minimise financial risks.
To protect farmers’ livelihoods, the legislation provides a statutory basis for the Cocoa Farmers Pension Scheme and establishes an Educational Trust Scheme to support the educational needs and welfare of cocoa farmers. It further guarantees that producer prices for cocoa shall not fall below 70 per cent of the gross Free-on-Board (FOB) price realised by COCOBOD each crop season.
The law also introduces a national Cocoa Management and Traceability System to strengthen data management, improve traceability from farm to export, enhance sustainability compliance and support international market access. It establishes a comprehensive licensing regime for participants across the cocoa value chain, backed by stronger inspection, enforcement and quality assurance mechanisms.
In addition, the legislation promotes local processing and value addition, creates a Cocoa Sector Forum to deepen stakeholder engagement, enhances accountability through mandatory transparency standards and introduces tougher penalties for offences such as cocoa smuggling, corruption, unlawful trading and the destruction of cocoa farms.
With the passage of the Ghana Cocoa Board Bill, 2026, Parliament has established a modern legal framework aimed at repositioning Ghana’s cocoa industry by improving financial management, strengthening institutional governance, promoting value addition, protecting cocoa farmers and preserving the country’s reputation as a leading producer of premium-quality cocoa.
By: Christian Kpesese/NR NEWS
