News:
July 30, 2026
Deputy Minister for Finance, Thomas Nyarko Ampem, has mounted a strong defence of the government’s proposed Cocoa Board Bill, 2026, arguing that the legislation will revolutionise Ghana’s cocoa sector by guaranteeing farmers a minimum of 70 per cent of the gross Free-on-Board (FOB) price, mandating local processing, and protecting cocoa farms from illegal mining.
Presenting the government’s case on the floor of Parliament, Mr Ampem addressed concerns raised by the Minority, who have called for broader stakeholder consultations before the bill is rushed through .
New funding model to replace collapsed syndicated loans
The Deputy Minister explained that the bill is born out of necessity, following the collapse of the traditional syndicated loan structure that had financed cocoa purchases for decades.
“Following the mismanagement of the economy that led to a debt restructuring, COCOBOD could not access syndicated loans again,” Mr Ampem told Parliament. “That forced COCOBOD to resort to the buyer-led funding model’. That funding model, too, has actually proven to be unsustainable.”
He noted that the new bill introduces a fresh financing framework that will allow COCOBOD to source funds locally to purchase cocoa beans from farmers . The government has already announced plans to replace offshore syndicated loans with a domestic commercial paper programme, drawing capital from local pension funds, commercial banks, and private actors within the cocoa value chain .
50% local processing to create jobs
Mr Ampem emphasised that one of the bill’s most transformative provisions is the requirement that at least 50 per cent of Ghana’s cocoa beans be processed locally.
“Because COCOBOD was using the beans as collateral and engaging in forward-sale contracts, it was practically impossible for the board to have beans available for our local processing companies,” he explained. “This new bill brings a new arrangement where the beans will be available for our local processing companies.”
He stressed that the measure is central to the government’s industrialization agenda. “The bill is saying that at least 50% of our cocoa produced should be processed locally to add value and to create jobs for our people,” he said .
70% FOB price guarantee legislated
Addressing concerns about the pricing mechanism, the Deputy Minister insisted that the bill will codify the government’s commitment to farmers.
“The bill is also bringing wonderful provisions that are part of the policy announcement the government has made – that we want a minimum of 70% of FOB price of cocoa to go to the local farmers who are sweating to produce the beans,” Mr Ampem said. “We should go further to legislate this so that it becomes very binding for nobody to get up tomorrow and say, ‘oh, we say 70% but today we are doing 60%’” .
He took a swipe at critics of the provision. “This is what some people are against. Some people do not want our farmers to be guaranteed a minimum of 70% of FOB price,” he asserted.
Cocoa farms to be designated protected lands
The bill also seeks to combat the devastating impact of illegal mining, popularly known as galamsey, on cocoa farms.
“We all know the debilitating effect of galamsey on our cocoa farms today,” Mr Ampem stated. “So the bill is designating every cocoa farm as a protected land so that we can protect our cocoa farms” .
Scholarship scheme prioritised for cocoa-related courses
Responding to comments from Honourable Boamah about the scholarship scheme, Mr Ampem clarified that the bill enhances the existing programme rather than restricts it.
“What we are saying is that, apart from helping children of cocoa farmers, we want the scholarship scheme to have another advantage – promoting courses that will help our children also contribute to implementing the cocoa sector,” he explained.
He noted that courses such as agronomy and soil science will be prioritised, but stressed: “It doesn’t mean if a child of a cocoa farmer is pursuing law or engineering, that child will not be supported. That is not the case” .
Consolidating cocoa laws
Mr Ampem concluded by framing the bill as a consolidation exercise. “What we are doing is to consolidate all the laws so that we will have one Cocoa Board law that will regulate the entire sector,” he said.
The bill, which seeks to repeal and replace the Ghana Cocoa Board Act, 1984 (PNDCL 81), is currently before Parliament . However, Ranking Member on Parliament’s Economy and Development Committee, Kojo Oppong Nkrumah, has urged caution, warning that the proposed law could have serious consequences if stakeholders are not properly consulted .
Ghanamps.com