Thomas Ampem Nyarko
COCOBOD’s indebtedness to fertilizer and agrochemical suppliers from 2021 to 2024 is part of broader financial challenges inherited in the cocoa sector, Deputy Finance Minister, Thomas Ampem Nyarko, has told Parliament.
The Asuogyaman MP said the sector faces significant fiscal pressures from procurement commitments that exceeded budgetary allocations in previous crop seasons. For the 2021–2022 crop year, COCOBOD procured $455.7 million worth of agrochemicals against a budget provision of $312.8 million, Ampem Nyarko revealed.
“The agrochemicals procured for the 2021–2022 season were not paid for, but COCOBOD continued to procure additional quantities in 2022, 2023, and 2024, all of which were above the budgeted amount in each year,” he said.
In the 2023–2024 season alone, COCOBOD contracted about $668.6 million in agrochemicals while only $76.5 million was budgeted, he added.
The trend raises concerns about fiscal discipline and procurement planning, he said. Ampem Nyarko noted the mismatch between rising procurement and falling output.
“While procurement of fertilizers and agrochemicals was increasing, cocoa production was declining, raising questions as to what these fertilizers and agrochemicals were used for,” he said.
He stressed that the debt to agrochemical suppliers is “part of inherited structural and financial challenges affecting the cocoa sector, rather than an isolated issue.”
The government is implementing reforms to restore financial stability in the industry and ensure COCOBOD meets obligations sustainably, he said.
“COCOBOD is approaching the issue systematically. The strategy is to restore its financial capacity so that it can honour its obligations to all creditors, including agrochemical dealers, in a sustainable and transparent manner,” Ampem Nyarko explained.
“Government is fixing the system so that suppliers are paid not once, but always, predictably, transparently, and on time,” he assured. He said ongoing reforms target long-standing inefficiencies to ensure the long-term sustainability of the cocoa sector.
The comments come amid increased scrutiny of COCOBOD’s financial position and calls for tighter oversight of procurement practices in Ghana’s cocoa industry.
A Business Desk Report