Arabfields, Maleeka Kassou, East, West & Central Africa Agriculture Correspondent — Ghana is preparing a major overhaul of its cocoa industry through new legislation that aims to modernize the operations of the Ghana Cocoa Board, better known as COCOBOD. The proposed bill is expected to replace the legal framework that has governed the sector for more than four decades, introducing reforms designed to improve governance, financing and the way cocoa farmers are paid.

Under the proposed law, cocoa farmers would be guaranteed at least 70 percent of the gross Free on Board export price, a significant measure intended to strengthen producer incomes. The pricing mechanism would also be linked to international cocoa prices, exchange rate movements and other market conditions, allowing farmgate prices to respond more quickly to changes in the global market. Farmers in several cocoa growing communities have welcomed the proposal, saying a more transparent pricing system could provide greater financial stability for their households.

The reforms extend beyond producer payments. The government also plans to introduce a new financing framework for cocoa purchases while encouraging more domestic processing. The bill would require at least 50 percent of Ghana’s cocoa beans to be processed within the country, a move expected to create additional jobs, increase value added exports and strengthen the local manufacturing sector. Industry representatives believe expanded processing capacity could help Ghana capture a larger share of the global chocolate market.

The announcement comes as Ghana continues efforts to stabilize its cocoa sector after several challenging seasons marked by production pressures and financial constraints. Officials believe the proposed legislation will improve COCOBOD’s long term financial sustainability while making the industry more competitive in an increasingly dynamic international market.

Looking ahead, analysts expect the reforms to strengthen confidence among cocoa farmers and investors if Parliament approves the legislation. With global demand for sustainably sourced cocoa projected to remain resilient through the coming years, a more flexible pricing system and greater local processing could improve Ghana’s export earnings while supporting rural livelihoods. If successfully implemented, the new framework may position the country’s cocoa industry for stronger growth and greater resilience against future market volatility.