Former Finance Minister Dr. Mohammed Amin Adam has sharply criticized the government’s management of Ghana’s cocoa sector, blaming current challenges on what he describes as a failure to implement a COCOBOD turnaround strategy developed in collaboration with the International Monetary Fund.
Speaking at a press conference alongside the Minority Caucus, Dr. Adam said the unfolding difficulties were predictable.
“What is happening today is not surprising. This government has failed to implement the COCOBOD turnaround strategy,” he stated.
According to him, key components of the strategy remain unimplemented, including:
• Moving cocoa road costs to the Roads Ministry
• Legislating a transparent cocoa pricing policy
• Removing unnecessary costs that reduce the producer price
• Improving efficiency and cutting procurement expenses at Ghana Cocoa Board
Dr. Adam argued that instead of reducing the cocoa producer price from GH¢3,625 to GH¢2,587 per bag, the government should have provided a bailout package to COCOBOD, as was done previously.
He also criticized the IMF, accusing it of failing to ensure adherence to agreed reforms.
The Minority Caucus has described the price reduction as “ridiculous, unfair, and unacceptable,” and is demanding an immediate review.
Dr. Adam further questioned the government’s broader economic management, challenging claims that the economy is being handled better than before.
“An economy that is better managed cannot reduce the producer price of cocoa and still claim progress,” he said.
He linked the cocoa sector struggles to what he described as the overvaluation of the Ghana cedi, warning that it undermines export competitiveness.
Citing comments by COCOBOD CEO Randy Abbey, Dr. Adam noted that Ghanaian cocoa is becoming relatively more expensive on the international market, potentially driving buyers elsewhere.
Key Concerns Raised:
• An overvalued currency hurts exports and encourages imports
• Local produce such as rice and maize struggles to compete with cheaper imports
• With inflation reportedly at 3.8%, the cedi should not be appreciating, he argued
• Government must protect exports and jobs, especially under its proposed “24-hour economy” policy
Dr. Adam accused the administration of pursuing short-term economic optics at the expense of long-term growth and sustainability.
The Minority is now pushing for a review of the producer price, insisting that cocoa farmers must not bear the burden of what they call “poor economic decisions.”
