SPOTLIGHT


PHOTO: Courtesy of Praise Nutakor/UNDP


PHOTO: Shutterstock.com


Our financing, together with other lenders’, ensures that the


PHOTO: Courtesy of Praise Nutakor/UNDP PHOTO: Mapawa/Shutterstock.com


OPEC Fund Quarterly: How important is cocoa to Ghana’s economy? Harris Andoh: Largely, Ghana’s economy depends on agriculture and the production of raw materials for export. In 2021, cocoa was forecast to contribute 2.25 billion Ghanaian Cedis – equivalent to around US$390 million – to our GDP. Ghana is the second-largest producer of cocoa in the world (after Côte d'Ivoire) with a market share of about 20 percent. Cocoa contributes significantly to the country's total foreign exchange earnings, second only to mineral exports. While the cocoa sector's overall contribution to GDP is about 3.5 percent, it makes up about a quarter of total export receipts, while also providing about two-thirds of cocoa farmers' incomes.


OFQ: What is the biggest difficulty in cocoa farming? HA: One critical issue is land tenure. Most cocoa farmers do not own the land they work on since they are migrant farmers. This does not ensure proper land use practices and adequate benefit sharing amongst stakeholders. Furthermore, the issue of adequate and environmentally sustainable pesticides for pest control is also a challenge. Lastly, the price of cocoa is a threat to the long- term sustainability of cocoa farming in Ghana. In the early 2000s when prices of palm nuts went higher than cocoa, most farmers reverted to planning for palm trees instead of cocoa.


HARRIS ANDOH


Ghanaian government is able to meet the financing needs for the annual cocoa harvest season, which is critical to the growth and sustainability of the


cocoa industry and the overall economy.


Fatima Ademoh, Investment Manager,


Private Sector & Trade Finance Operations, OPEC Fund


39


PHOTO: Courtesy of Harris Andoh


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