Cocoa Board Debt Debate: I Challenge NDC’s Claim of Surplus in 2016 – Fiifi Boafo
Cocoa Board Debt
Cocoa Board Debt, World Market Prices and Political Claims: Former Official Responds to NDC
A former Head of Public Affairs at the Ghana Cocoa Board (Cocoa Board), Mr. Fiifi Boafo, has rejected claims by the opposition National Democratic Congress (NDC) that the cocoa sector was left in a healthy financial position when it handed over power in 2017. According to him, the narrative that the New Patriotic Party (NPP) inherited a financially stable Cocoa Board with a surplus is inaccurate.
Resignation and Political Neutrality
Recounting his personal experience, the former official said he chose to resign from his position after discussions regarding political neutrality and potential conflicts of interest. “I made a personal decision to resign. Politicians can do anything just to get where they want to go, so I felt it was appropriate to step aside,” he explained.
Financial Position in 2016
Addressing the financial state of the Cocoa Board in 2016, he revealed that the Board had been injected with approximately GH¢18.6 billion, including significant borrowing.
He explained that:
- About $1.8 billion had been secured as a syndicated loan facility.
- By December 30, 2016, the entire amount had been drawn down.
- There was no remaining liquidity to run cocoa operations when the NPP took office.
Mr. Boafo argued that while assets existed on paper, liabilities, including inherited debt, outweighed available operational cash. “When you calculate assets, you must also calculate liabilities. The issue was not just about assets but the debt burden and cash flow constraints,” he stated.
Production Targets and Borrowing
The former official disclosed that the COCOA BOARD had projected to purchase 800,000 metric tons of cocoa in 2016 but managed to buy only about 500,000 metric tons. To stabilize operations, management had to approach the Bank of Ghana for additional financing.
Between 2017 and 2019:
- Annual syndicated loans were secured to finance cocoa purchases.
- Additional medium-term facilities of about $750 million were contracted to stabilize the Board’s finances.
Impact of Global Cocoa Prices
He emphasized that global market prices significantly affected COCOA BOARD’s financial health.
- In 2016, cocoa prices were around $3,500 per ton.
- By 2017–2020, prices had dropped sharply to between $1,800 and $2,600 per ton.
- A major price surge only occurred in 2023–2024, rising to about $10,000 per ton and later climbing further in 2025.
He argued that during the years of low global prices, COCOA BOARD struggled to generate strong margins while also servicing inherited and newly contracted debts. “This was a period of low international prices. It limited profitability and made debt servicing difficult,” he explained.
Record Production: He also noted that Ghana achieved one of its highest cocoa production levels under the NPP administration, exceeding 900,000 metric tons at one point. According to him, the improved production figures demonstrated that the sector was not “run down” as suggested.
Political Debate Continues: The debate over COCOA BOARD’s financial position remains a major political issue between the NPP and NDC. The former official maintained that the only meaningful solution is for the government to honor the minimum guaranteed price announced at the beginning of the season. “What the government must do is pay the farmer the GH¢3,625 they promised in August. That is the minimum guaranteed price.
Anything below that undermines confidence.” He warned that policy inconsistency erodes trust in pricing systems and could have long-term consequences for production, farmer morale, and cross-border trade. While the NDC maintains that it left behind a surplus, the former official insists that the NPP inherited significant debt, low global prices, and liquidity challenges that constrained operations in the early years. “It is misleading to suggest that everything was rosy in 2017,” he concluded.
