For decades, Ghana’s cocoa sector operated under a relatively stable and predictable financing arrangement anchored in syndicated loans from international banks.

These annual syndicated facilities ensured that, regardless of market shocks or cash flow pressures, there was continuous liquidity throughout the cocoa season to purchase beans from farmers via Licensed Buying Companies (LBCs).

Once the season started, funds were available until the very last bag of cocoa was bought.

That system broke down beginning in the 2024/25 cocoa season. The reasons for this breakdown are structural, contractual, and financial.

Loss of Syndicated Financing

In the 2023/24 season, COCOBOD entered into forward sales contracts to supply 800,000 metric tons of cocoa.

However, due to production shortfalls, smuggling, operational inefficiencies, and financial constraints, Ghana failed to honor these contracts. The country fell short by 333,767 metric tons, which had to be rolled over into subsequent seasons.

This failure to deliver fundamentally undermined Ghana’s credibility in the eyes of international lenders.

As a result, for the 2024/25 season, Ghana was denied access to the traditional syndicated loan facility. Compounding this problem was the Domestic Debt Exchange Programme (DDEP), which severely weakened COCOBOD’s balance sheet and impaired its cash flows.

The DDEP not only affected government finances but also directly impacted state-owned institutions like COCOBOD, which depended on predictable financial instruments.

With weak financials, unresolved rolled-over contracts, and exposure from the DDEP, the international banking community effectively shut the door on Ghana, making syndicated financing impossible.

Shift to Off-Taker Financing and the 60/40 Model

Faced with the collapse of syndicated financing, COCOBOD adopted an alternative emergency financing model.

Under this arrangement, off-takers (buyers) agreed to pre-finance cocoa purchases but under strict and commercially protective conditions.

First, Ghana was required to service the rolled-over 333,767 metric tons at the original contract price of $2,600 per ton, even though market conditions and farm-gate prices had changed significantly.

Second, the buyers insisted on determining which LBCs would receive funds, effectively bypassing COCOBOD’s traditional centralized control over cocoa purchasing.

The financing structure for the 2024/25 season was termed 60/40, meaning 60% of the contract value was paid up-front, while the remaining 40% was paid only upon shipment of cocoa.

Crucially, COCOBOD’s operational margins, including payments to LBCs, haulers, and internal costs, were embedded largely in the 40% portion.

This meant COCOBOD could only fully operate once shipments were completed and the balance was released.

Under this same arrangement, COCOBOD had to service both the rolled-over cocoa and new contracts signed for the fresh crop, placing enormous strain on cash flows.

For the 2025/26 season, management decided to continue with this model, not because it was ideal, but because COCOBOD’s financial books remained weak.

The goal was to stabilize and clean up the books as a prerequisite for restoring syndicated financing in the future.

However, to prioritize farmer welfare, the structure was adjusted from 60/40 to 80/20, ensuring that more cash was available upfront so farmers could be paid promptly.

Despite these efforts, the cost of servicing old obligations has been heavy. COCOBOD has already serviced over 235,000 metric tons of the rolled-over contracts at an average loss of about $500 per ton.

This loss arose because the contract price was $2,600 per ton in 2023/24, while the farm-gate price rose to about $3,100 per ton in 2024/25. The difference has had to be absorbed by COCOBOD.

Public claims that farmers have not been paid since November do not fully reflect the realities of the new financing model.

Under the off-taker financing system, some LBCs received direct funding and therefore paid farmers immediately for cocoa purchased.

However, LBCs that were not selected by off-takers had to rely on their own resources to buy cocoa and later submit it to COCOBOD through the Cocoa Marketing Company (CMC).

While COCOBOD does have outstanding obligations, it is inaccurate to say no payments have been made.

Payments have been effected between November and February, although delays occurred due to shipment schedules and the release of the remaining financing tranches.

Collapse of International Cocoa Prices

The challenges have been worsened by a dramatic fall in global cocoa prices. In 2024, prices peaked at nearly $12,000 per ton, but by late 2025, prices had collapsed to around $4,000 per ton, where they continue to hover.

This decline has affected all producing countries, including Ghana and Côte d’Ivoire.

Although Côte d’Ivoire has not officially announced a price reduction, reports indicate that cooperatives are selling cocoa at discounted prices.

Ghana’s position is particularly difficult because its cost structure is high. From farm-gate price to shipping, Ghana spends not less than $6,300 per ton, which is well above the prevailing international price of $4,000.

This price mismatch has caused buyers to hold back from signing new contracts, further constraining liquidity.

Nonetheless, it is important to note that 580,000 tons out of a projected 650,000 tons for the 2025/26 season have already been bought, graded, and sealed, demonstrating continued operational activity despite market stress.

The price of cocoa in Ghana is not arbitrarily set. It is determined by the Producer Price Review Committee (PPRC), which includes representatives of farmers, the Ministry of Finance, the Bank of Ghana, transporters, LBCs, and COCOBOD.

Until this committee formally meets and takes a decision, the current farm-gate price remains unchanged.

The government and COCOBOD have reiterated their commitment to securing the best possible outcome for farmers, with announcements expected once deliberations are concluded.

Concerns have also been raised about the purchase of new vehicles by COCOBOD.

These vehicles were procured strictly for operational purposes and were not financed from funds meant for farmers.

The funding came from a residue fund, an Internally Generated Fund (IGF) belonging to the Board.

The objective is to improve operational efficiency, which ultimately benefits farmers.

It is also important to note that about 70% of COCOBOD’s operational vehicles are over 10 years old, making replacement unavoidable.

COCOBOD’s finances are burdened by several legacy expenditures.

These include a $48 million jute sack procurement despite adequate stock, GHS 26 billion spent on cocoa roads, including GHS 21 billion from 2018 to 2021 with no budget for those years, and a $350 million program aimed at rehabilitating 156,400 hectares of cocoa farms, but only 40,000 hectares were completed, with an additional GHS 700 million later spent. Overall, COCOBOD’s total debt stands at approximately GHS 32.9 billion.

The challenges facing Ghana’s cocoa sector are not the result of a single decision or season.

They are the cumulative outcome of contractual defaults, weakened finances, global market shocks, and legacy debts.

While the current financing model is far from perfect, it represents a stopgap measure to keep the sector functioning, protect farmers, and gradually restore financial credibility.

The path forward lies in discipline, transparency, and restructuring, not simplistic narratives that ignore the deeper realities confronting COCOBOD and the cocoa economy.

 

Source: Myxyzonline.com

President John Dramani Mahama met with Zambian President Hakainde Hichilema in Lusaka to strengthen bilateral relations and explore collaboration in key sectors such as mining and agriculture.

He  highlighted the historic ties between Ghana and Zambia, recalling the friendship between Presidents Kwame Nkrumah and Kenneth Kaunda during the African liberation struggle.

“As Ghana celebrates 70 years of independence next year, we can better appreciate the call for African unity made by our founding fathers,” President Mahama said.

“The divisions created by colonialism have slowed our development, and today, we must work even closer together to accelerate progress.”

The two leaders discussed shared economic challenges, including debt restructuring and fiscal reforms.

President Mahama noted, “Zambia and Ghana are on the same trajectory in dealing with economic challenges. We can learn a lot from each other’s experiences.”

Mining and agriculture were also central to the talks. President Mahama emphasized the importance of cooperation in these sectors, saying, “We both face challenges with artisanal and small-scale mining, and it’s crucial we share our experiences to find solutions. Similarly, enhancing agricultural production and trade between our countries is essential.” He stated

President Mahama further stressed the need for deeper economic collaboration.

“We must move beyond political dialogue to focus on economic consolidation. Strengthening bilateral relations is the key to creating a more prosperous future.”

On his part, Zambian President, Hakainde Hichilema stressed the importance of the Ghana-Zambia relationship.

“This partnership dates back to the era of our founding fathers, President Nkrumah and President Kaunda. We intend and desire to deepen our cooperation and use that as a building block towards the African Continental Free Trade Area (AfCFTA).”he noted.

President Hichilema also expressed support for Ghana’s role in the AfCFTA, stating, “We are pleased that Ghana is hosting the Secretariat of the AfCFTA, and Zambia will do everything possible to make sure Ghana succeeds in this important endeavor.”

The leaders also celebrated the strong connections between the Ghanaian and Zambian communities.

 

Source: myxyzonline.com

President John Dramani Mahama arrived in Lusaka, Zambia, on Wednesday, February 4, 2026, for a three-day state visit at the invitation of his Zambian counterpart, President Hakainde Hichilema.

President Mahama, accompanied by his wife, First Lady Lordina Dramani Mahama, was met on arrival by President Hichilema at the Kenneth Kaunda International Airport in Lusaka.

Also at the airport to welcome President Mahama was Madam Elizabeth Nyantakyi, Ghana’s High Commissioner to Zambia.

During the visit, President Mahama will hold bilateral talks with President Hichilema on matters of mutual interest, including strengthening diplomatic relations, enhancing trade and investment cooperation, and exploring collaborative opportunities within the framework of the African Continental Free Trade Area (AfCFTA).

He is also expected to lay a wreath at the Embassy Park in Lusaka in honor of the Southern African nation’s fallen heroes.

A key highlight of the visit will be an address to the National Assembly of Zambia, where President Mahama will share Ghana’s vision for a more integrated and prosperous Africa.

President Mahama will also meet with members of the Ghanaian community in Lusaka to interact with compatriots living and working in Zambia.

There will be a Ghana-Zambia Business Dialogue, co-chaired by Presidents Mahama and Hichilema.

The dialogue will provide a platform for Ghana to showcase its digital technologies and fintech services to Zambian businesses and government institutions, fostering economic partnerships and knowledge exchange between the two countries.

President Mahama’s state visit underscores his unwavering commitment to his vision of an Africa that is seamlessly connected through enhanced transport infrastructure, expanded trade linkages, and the free movement of people and goods.

President Mahama’s delegation includes Foreign Affairs Minister Samuel Okudzeto Ablakwa, Executive Secretary Dr. Callistus Mahama, Presidential Advisor Joyce Bawa Mogtari, Deputy Chief of Staff Stan Xoese Dogbe, Spokesperson Felix Kwakye Ofosu, Education Minister Haruna Iddrisu, Communication Minister Samuel Nartey George, and Gender Minister Dr. Agnes Naa Momo Lartey.

 

Source: myxyzonline.com

Vice President Professor Naana Jane Opoku-Agyemang says the government is taking deliberate steps to position Ghana more prominently within global value chains, with a focus on attracting investment that supports local production rather than reliance on imports.

She made the remarks on Tuesday when she received a delegation from Hwaseong, South Korea, led by the Korea Trade-Investment Promotion Agency (KOTRA), as part of engagements aimed at strengthening trade, investment, and industrial cooperation with Ghanaian companies.

According to the Vice President, Ghana’s objective is to attract investments along production lines to ensure that significant aspects of manufacturing take place within the country.

She noted that Ghana’s youthful population remains a major strategic advantage and stressed that partnerships must be structured to harness the skills and creativity of young people to drive productivity and innovation.

Prof. Opoku-Agyemang acknowledged South Korea’s success in areas such as fisheries training schools and research centers, describing them as models that Ghana is willing to learn from through collaboration.

She expressed Ghana’s readiness to work with South Korean partners across multiple sectors, including manufacturing, agribusiness, skills development, and technology.

The Vice President also referenced the delegation’s engagements with key institutions, including the Ghana Investment Promotion Centre (GIPC) and stakeholders in the Ekumfi constituency, noting that such interactions are essential for identifying practical investment opportunities.

Welcoming the delegation to Ghana, Prof. Opoku-Agyemang emphasized the importance of human-centered cooperation that promotes shared prosperity and contributes to global peace.

She reaffirmed Ghana’s openness to partnerships that are genuinely collaborative and sustainable, describing such engagements as critical to securing long-term economic growth and national resilience.

 

Source: Myxyzonline.com

President John Dramani Mahama has directed the National Investigation Bureau (NIB) to conduct a forensic investigation into an alleged scholarship scam.

The directive, contained in a letter signed by the Secretary to the President, Dr. Callitus Mahama, on Tuesday, February 3, 2026, instructed the NIB to immediately begin the investigation and report its findings to the President’s office.

“In consequence thereof, the President has directed the National Investigation Bureau (NIB) to immediately investigate the allegation, establish its factual basis, identify any persons involved, and determine the veracity of the claims made,” Dr. Callitus Mahama directed.

The directive follows a radio discussion in which the former Chief Executive Officer of the National Entrepreneurship and Innovation Programme alleged that an individual paid to secure a scholarship for studies abroad.

The President has deemed this allegation serious and has called for a thorough investigation.

“The attention of the President has been drawn to a radio discussion aired on Sompa 106.5 FM, during which a panellist, Mr. Kofi Ofosu Nkansah, former Chief Executive Officer of the National Entrepreneurship and Innovation Programme, alleged that an individual paid to secure a scholarship to pursue studies abroad,” the statement read.

He further added, “Following a review of the said radio discussion, which was conducted in the Twi language and has since gained wide public circulation, the President considers the allegation to be serious and of grave public concern, particularly in light of the Government’s firm commitment to transparency, integrity, and equal access to educational opportunities.”

 

Source: myxyzonline.com

President John Dramani Mahama has arrived in Dubai to participate in the 2026 World Governments Summit, a high-level global forum that brings together leaders to shape the future of governance.

President Mahama departed Accra aboard an aircraft provided by the President of the United Arab Emirates and Ruler of Abu Dhabi, His Highness Sheikh Mohamed bin Zayed Al Nahyan.

The aircraft conveyed the President of Ghana from Accra to Dubai and will continue on to Lusaka after the World Governments Summit.

President Mahama arrived in Dubai in the early hours of Monday, February 2, and was welcomed by His Excellency Sheikh Shakhboot bin Nahyan Al Nahyan, Minister of State of the United Arab Emirates.

The 2026 World Governments Summit, themed “Shaping Future Governments,” convenes governments, international organizations, thought leaders, and private sector executives from around the world.

It serves as a platform to strengthen international cooperation, explore innovative solutions to global challenges, and inspire the next generation of governments.

The 2026 Summit agenda is structured around five core pillars aimed at building a better future for humanity: Global Governance and Effective Leadership, Societal Wellbeing and Capacity Building, Economic Prosperity and Emerging Opportunities, Urban Futures and Evolving Demographics, and Future Realities and Next Frontiers.

The event, which is scheduled to take place at Madinat Jumeirah, Dubai, will bring together leaders from government, business, and science to exchange ideas on governance, innovation, and forward-looking public policies.

Notable participants include H.E. Julius Maada Bio, President of the Republic of Sierra Leone; H.E. John Dramani Mahama, President of the Republic of Ghana; H.E. Daniel Noboa, President of the Republic of Ecuador; H.E. Guy Parmelin, President of the Swiss Confederation; H.E. Pedro Sánchez, President of the Government of Spain; H.E. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF); and H.E. Jasem Al Budaiwi, Secretary-General of the Gulf Cooperation Council (GCC), among other global leaders.

The Summit is expected to shape critical conversations on the policies and innovations that will define future societies.

 

Source: myxyzonline.com

President John Dramani Mahama has reaffirmed his government’s unwavering commitment to strengthening the Ghana Armed Forces.

He emphasized that the commissioning of new officers, despite limited resources, underscores Ghana’s resolve to maintain a capable and resilient military, particularly in the face of evolving security challenges.

At the graduation parade of the Regular Career Course 64 intake 256 and the Short Service Commission and Special Duties Course 62, held at the Ghana Military Academy on Friday, January 30, 2026, President Mahama described the security situation in the sub-region as complex and volatile, noting that violent extremism, terrorism, and transnational crime continue to pose serious threats along Ghana’s northern borders.

He stressed that security is a shared national responsibility and called for an “all-hands-on-deck” approach to safeguard the peace and stability of the country.

“Commissioning officers in these times of limited resources underscores our resolve to maintain a capable and resilient Armed Forces to confront the security challenges of our time.

Distinguished guests, the security environment in our sub-region remains complicated and volatile.

Violent extremism, terrorism, and transnational crime continue to pose serious threats, particularly along our northern border,” President Mahama stated.

The President reiterated the government’s commitment to retooling the military, citing the engagement of 48 engineers in contracts awarded under the “Big Push” initiative aimed at boosting the Ghana Armed Forces’ internally generated funds.

On the fight against illegal mining (galamsey), President Mahama was firm in his resolve, warning that the government would continue the fight decisively and without fear or favour.

“Let me be clear, illegal mining will continue to be confronted decisively and without fear or favour. But this fight requires national unity.

It is a moral, civic, and generational duty, and I call on all Ghanaians to stand together to restore and protect our land. As we celebrate today, we remain mindful of the conflicts in Boko, Benigiri, Nkwanta, and other places which have disrupted lives and livelihoods,” he stressed.

President Mahama assured the affected officers that the government would not shirk its responsibility to safeguard the integrity of the army.

“I wish to assure the affected officers that the government will not shirk its responsibility to our men and women in uniform who have served our nation well. We will find an acceptable solution to this challenge. Distinguished guests, strengthening the operational readiness of the Ghana Armed Forces remains a number one priority for my administration. We’re investing in modern equipment, advanced training, and improved welfare to respond effectively to terrorism, piracy, and cross-border crime,” he emphasized.

 

Source: myxyzonline.com

President John Dramani Mahama on Tuesday granted an audience to the outgoing Chinese Ambassador to Ghana, His Excellency Tong Defa, commending him for strengthening bilateral relations between Ghana and China during his tenure.

“You haven’t just been an ambassador or diplomat; you have been a friend, and I’m sad to see you go. Of course, our relations with China are excellent,” the President remarked.

President Mahama also expressed gratitude to Chinese President Xi Jinping for China’s role in negotiating Ghana’s debt restructuring and for providing substantial support for the country’s development.

He cited a US$30 million grant for the Aflao Market Project and another US$30 million allocated for the construction of a new Science and Technology University in Damango.

“We want to see greater cooperation with China in logistics, training in anti-terrorism, and building border surveillance to ensure there is no infiltration in these areas,” he added.

The President further proposed the establishment of a payment and settlement system between the two countries to facilitate trade and financial transactions.

Ambassador Tong congratulated President Mahama on the successes recorded in the first year of his tenure, particularly in improving Ghana’s economic fortunes.

He called for stronger cooperation between Ghana and China in industry, trade, mining, and science and technology.

The outgoing envoy also disclosed that China’s zero-tariff arrangement for Ghana’s exports would soon be operationalised.

He further appealed to President Mahama to support China’s bid to host the Secretariat of the new United Nations treaty on Biodiversity Beyond National Jurisdiction.

 

Source: myxyzonline.com

Vice President Professor Naana Jane Opoku-Agyemang has called on the Ministry of Energy and Green Transition to place discipline and long-term planning at the centre of efforts to stabilise Ghana’s energy sector, cautioning against policy language that does not translate into results for consumers.

She made the call during an official working visit to the Ministry on Tuesday, January 27, 2026.

Prof. Opoku-Agyemang said lasting solutions in the energy sector would depend on consistent planning, openness to reviewing strategies, and decisions grounded in outcomes rather than slogans.

Addressing senior officials, agency heads, and the media, the Vice President acknowledged recent improvements in the management of energy sector debts and the gradual return of confidence among suppliers and service providers, noting that these developments were beginning to reflect in the wider economy.

“We had huge debts. We were in a situation, and it wasn’t an amusing situation at all,” she said, adding that improved efficiency in meeting obligations was helping players along the energy value chain see value in their investments.

The Vice President stressed that progress achieved so far could only be sustained through deliberate, long-term planning, warning against reliance on what she described as attractive policy language that fails to deliver.

“Solid planning, not fancy words and so on, which sometimes don’t send us where we need to be,” she said, noting that government must be ready to revise approaches when policies fall short.

Prof. Opoku-Agyemang said policy choices must ultimately benefit the wider population, especially consumers.

She assured the Ministry of continued political backing, both in times of progress and difficulty, saying such support was necessary to sustain reforms and achieve lasting improvements.

The Minister for Energy and Green Transition, Mr. John Abdulai Jinapor, welcomed the Vice President’s visit and said the Ministry would continue implementing reforms under the leadership of the President and Vice President.

He expressed confidence that ongoing initiatives would deliver steady gains.

Prof. Opoku-Agyemang concluded by commending officials and workers across the energy sector, including those not present at the engagement, for their role in rebuilding public trust.

She urged sustained coordination among agencies, stressing that planning and accountability remain central to delivering a reliable and efficient energy sector.

 

Source: myxyzonline.com

“The welfare of our personnel remains a top priority. I fully support initiatives such as the proposed mutual health fund for service personnel and their families, which will improve access to healthcare and financial security.

As you have been informed, the seed money for the fund, the trust fund and welfare fund, will be provided by the National Security Secretariat.

I also acknowledge the generosity of Mr Kofi Appiah, Chief Executive Officer of All Day Ventures, for supporting this noble cause.

“I bring tidings of great joy, and it pleases me to announce that the new salary scales will take effect in March. You now understand what I mean by tidings of great joy. The new salary scales will start in March, and the arrears for January and February will also be paid in March.

“Thank you very much. I know you will receive this news with great joy.”

 

Source: myxyzonline.com