Finance Minister Dr. Cassiel Ato Forson has announced new legal reforms for the Ghana Cocoa Board (COCOBOD), as the government seeks to restructure the cocoa sector, improve financial sustainability, and expedite local value addition.
The proposed modifications coincide with the International Monetary Fund’s increased demands for structural adjustments at COCOBOD in order to lower operating expenses, boost productivity, and bring long-term financial stability back to the industry.
Speaking at the Ishmael Yamson & Associates Business Roundtable, Dr. Forson claimed that rather than dismantling COCOBOD, the government is working on reforms to reposition the organization.
“Cocoa board needs reforms. I do not believe in scrapping it, but I believe that we need to reform the cocoa board.”
He states that despite COCOBOD’s lengthy history as a significant source of foreign exchange earnings for Ghana, it has experienced operational and governance problems that call for structural intervention.
The Finance Minister revealed that the administration will present a new bill to Parliament in the upcoming weeks that aims to improve COCOBOD’s operations and structure.
“Cocoa board has served Ghana well. It has been a major source of foreign exchange. It has obviously suffered some mismanagement. It’s a fact that we need to recognise.”
“Government has taken a decision to reform cocoa board. I’ll be going to Parliament in the next few weeks to introduce a new bill to Parliament reforming cocoa board and changing the structure of cocoa board.”
It is anticipated that the proposed changes will promote value addition throughout the industry, increase operational effectiveness, and intensify ongoing efforts to restructure the cocoa financing system.
The IMF has already supported Ghana’s efforts to stabilise the cocoa sector and demanded that COCOBOD’s turnaround plan be implemented decisively, including changes to improve financial control and curtail quasi-fiscal actions.
Dr. Forson further stated that as part of a larger industrialisation program, the government plans to greatly expand local cocoa processing.
“For example, the bill was set to make sure that at least 50% of our raw cocoa is processed locally.”
“We’ve been shipping out our cocoa for too long and so we want to stop that.”
He pointed out that Ghana can no longer maintain a business that is primarily focused on exporting unprocessed cocoa beans without obtaining greater value in the supply chain.
Source: newsthemegh.com