The World Bank has recognized the significant challenges facing Ghana’s cocoa sector and is committed to providing strategic recommendations aimed at revitalizing this crucial industry.
During a meeting on January 8, 2025, with President John Dramani Mahama, Ousmane Diagana, the Vice President for West and Central Africa at the World Bank, highlighted the untapped potential within Ghana’s agricultural landscape, especially in cocoa production.
“Ghana stands out as a key player in cocoa, and we have developed a comprehensive understanding of the sector’s challenges and opportunities,” Diagana noted. “We have identified a wealth of potential in the agricultural sector, with a particular focus on cocoa. It’s essential to explore the existing similarities between Ghana and Côte d’Ivoire. We have formulated recommendations for collaboration that we can discuss further to leverage our current programs effectively and address the sector’s challenges.”
The cocoa sub-sector in Ghana is currently facing a period of contraction, having experienced a 26% decline in the third quarter of 2024. This marks the fifth consecutive quarter of decline for this vital industry, which plays a crucial role in the nation’s economy.
In contrast, the broader economy grew by 7.2% during the same period, with Ghana’s economy expanding to Ghȼ254 billion excluding oil, up from Ghȼ194 billion in the third quarter of 2023. The cocoa sector’s difficulties began in the third quarter of 2023 and have intensified throughout 2024, with the first quarter recording the steepest decline of 20.2%, followed by two consecutive quarters of 26% declines.
Despite these challenges, addressing the issues within the cocoa sector remains a priority, as it is vital for rural livelihoods and a key source of foreign exchange earnings for the country. By working together, the World Bank and Ghana can pave the way for a revitalized cocoa sector that meets its full potential.
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