SPOTLIGHT
COCOA, GHANA
GHANA IS COCOA IS
The OPEC Fund is contributing US$50 million to a pre-export facility for Ghana’s cocoa crop for the 2021/22 season. This marks the fifth contribution to the Ghana Cocoa Board
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(COCOBOD), as the OPEC Fund joins a consortium of 28 banks to buy some 950,000 tonnes of the country’s main and light cocoa crop for up to US$1.5 billion. The investment supports economic, environmental and social development and the reasons are clear and compelling By Howard Hudson, OPEC Fund
A
cross Africa, investment in agriculture is seen as humanity’s
best hope of achieving at least two UN Global Goals: SDG 1 – End Poverty, and SDG 2 – Zero Hunger. For Ghana in particular, agriculture remains an overwhelming priority, as it employs around 45 percent of the labor force (more than any other sector), and contributes some 15 percent of GDP. When it comes to cocoa, however, this is clearly more than a simple crop posting big numbers. Cocoa is iconic for Ghana, not just in terms of economics but also for its national identity, social history – even its climate future. As the saying goes: “Ghana is cocoa, cocoa is Ghana”.
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Throughout the country, cocoa is mainly produced in family-run, medium- sized plantations, extending on average 2-3 hectares, above all in the west of Ghana. As many as 800,000 people work directly in the plantation of cocoa, but nowadays many more are involved across the commercial, industrial and service sectors. The Ghana Cocoa Board (COCOBOD) is the main player in Ghana’s cocoa industry, performing various critical functions including quality control, provision of seeds, and the marketing of cocoa beans and related products. It also creates employment in its own right via its “rehabilitation programs” – i.e. cutting down and replacing diseased and over-
aged cocoa trees – programs which now account for almost 40,000 jobs.
Weathering global storms Ghana entered the COVID-19 pandemic having successfully completed an IMF program and set up a financial sector regulatory framework. The pandemic, however, caused significant disruptions. A partial lockdown in April 2020, including extensive border closures, led to higher food prices and a damaging slow-down in growth and exports. Changes in the supply chain – from distribution delays to retail shutdowns – hit the cocoa industry hard. Climate change is another factor that increasingly impacts cocoa farming.
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