Business
Cocoa Price Cut Sparks Fears Over Environmental Sustainability and Illegal Mining Surge
Ghana’s cocoa sector has returned to the spotlight following reports that the Ghana Cocoa Board, COCOBOD, is struggling to settle payments owed to some farmers. The situation has intensified public debate, particularly after the announcement of a reduction in farm gate prices.
Although the Minister for Finance, Dr Casiel Ato Forson, outlined a series of interventions aimed at stabilising the cocoa industry amid looming challenges, the proposed price cut has dominated discussions across farming communities and in the media.
Supporters of the measure argue that the government’s decision is driven by prevailing global market realities. International cocoa prices have declined, making Ghana’s produce relatively expensive compared to other major producers. Adjusting domestic prices, they contend, is necessary to maintain competitiveness, avoid stock accumulation, and sustain export volumes.
There is also the argument that aligning local prices with global benchmarks will help secure the long-term viability of the sector. By responding to market forces rather than sustaining high subsidies, the government aims to protect jobs, stabilise the economy, and prevent potential financial losses.
However, while these economic justifications may appear sound, critics warn that the reduction in farm gate prices could have far-reaching implications beyond the immediate income losses to farmers.
One major concern is environmental sustainability. Lower earnings may push serious and production-oriented farmers to intensify cultivation in order to maintain their livelihoods. This could lead to increased use of agrochemicals, expansion into forest reserves and protected lands, and heightened bush burning activities. Though gradual, such practices could significantly undermine environmental protection efforts.
Even more troubling is the possible impact on Ghana’s mining landscape. Illegal and unsustainable mining, widely driven by the search for more lucrative alternatives, continues to pose a serious environmental threat. Cocoa farming has traditionally been regarded as one of the most rewarding agricultural ventures in many rural communities, including those that overlap with mining zones.
There is already intense competition for land between farming and mining activities. In recent years, this competition has increasingly favoured mining. Agricultural lands are being converted into mining sites at a faster pace than reclaimed mining lands are restored to farming use.
In some cases, farmers voluntarily sell fertile lands to miners, attracted by immediate financial returns. In others, land is relinquished under pressure or financial inducement. The result has been a steady loss of arable land, with miners often emerging as the dominant beneficiaries in the struggle over land resources.
Against this backdrop, the timing of the cocoa price reduction raises fresh concerns. As farmers grapple with declining incomes, the gold sector is experiencing strong global demand and rising prices. The renewed focus on gold production, including the establishment of GOLDBod, underscores the growing centrality of mining to Ghana’s economic strategy.
Government officials have repeatedly highlighted gold production and management as key pillars supporting currency stability, inflation control, and broader macroeconomic resilience. This heightened prominence of the gold sector could inadvertently make mining, including small-scale and illegal operations, even more attractive.
Given the government’s ongoing battle against illegal mining and its devastating environmental consequences, any policy shift that weakens alternative livelihoods such as cocoa farming may complicate enforcement efforts.
Observers are therefore calling for stronger coordination between COCOBOD and GOLDBod to ensure that policies in the cocoa and gold sectors are aligned. Without such synergy, there is a risk that gains made in sustainable mining practices and environmental protection could be reversed.
To mitigate potential fallout, stakeholders are urging the government to introduce targeted subsidies, special support packages, and extensive sensitisation campaigns to sustain farmers’ interest in cocoa production. Clear communication and livelihood enhancement measures, they argue, will be essential in preventing a shift toward illegal mining and safeguarding environmental sustainability.
As Ghana navigates economic pressures in both agriculture and mining, the balance between fiscal prudence and environmental responsibility will remain critical. The cocoa price decision may be economically defensible, but its broader implications demand careful and strategic management.
The Bank of Ghana has directed Mobile Money Fintech Limited to suspend its planned 0.75 per cent charge on direct mobile money wallet-to-bank account transfers.
The proposed fee, which was expected to take effect from June 1, 2026, has been put on hold to allow for further stakeholder consultations, the central bank announced on Tuesday, May 26.
The directive follows a notice issued by MTN Ghana on Monday, May 25, informing customers that transfers from MoMo wallets to bank accounts would attract a 0.75 per cent fee per transaction, capped at GH₵5.
Under the proposed arrangement, customers would have been charged even when transferring funds from their own registered MoMo wallet to their personal bank account — a service that has so far been offered free of charge.
In a statement, the Bank of Ghana explained that the suspension forms part of efforts to ensure that any adjustments to charges within the mobile financial services space are implemented in a fair and transparent manner, while safeguarding consumer interests and financial well-being.
For the time being, customers will continue to enjoy free transfers from MoMo wallets to bank accounts, as the proposed charges remain suspended.
The central bank further clarified that existing charges on MoMo wallet-to-wallet transfers, as well as cash-in and cash-out transactions at agent points, remain unchanged.
MTN Ghana is yet to officially respond to the Bank of Ghana’s directive.
MTN Ghana has announced that Mobile Money users will begin paying charges for transfers from their MoMo wallets to bank accounts effective June 1, 2026, ending years of free transfers for customers moving funds between their own accounts.
In a text message sent to subscribers on Monday evening, May 25, the telecommunications company disclosed that all MoMo-to-bank transfers will now attract a fee of 0.75 per cent per transaction, capped at GH₵5.
Under the new pricing structure, customers transferring GH₵100 from their MoMo wallet to a bank account will pay 75 pesewas, while transfers of GH₵667 and above will attract the maximum charge of GH₵5.
The fee will apply to all bank transfers, including transactions involving bank accounts belonging to the same individual who owns the MoMo wallet. Previously, MTN customers enjoyed free transfers when moving funds between their personally registered MoMo wallets and bank accounts.
According to the company, the move forms part of efforts to improve service delivery to its growing customer base.
“From 1 June 2026, transfers from your MoMo Wallet to bank accounts will attract a fee of 0.75% per transaction, capped at GH₵5. This will help us continue to serve you better. Thank you for choosing MoMo,” the message to customers stated.
The development marks a significant change in MTN Ghana’s mobile financial service charges, particularly for customers who frequently transfer money from MoMo wallets into bank accounts for business and personal transactions.
However, the company clarified that the new charge applies only to transfers from MoMo wallets to bank accounts. Existing charges for MoMo-to-MoMo transfers, as well as cash-in and cash-out transactions at agent points, remain unchanged.
The Court of Appeal has unanimously restored the operating licence of GN Savings and Loans Company Limited, overturning an earlier High Court ruling that upheld the Bank of Ghana’s decision to revoke the company’s licence.
The latest judgment effectively nullifies the Bank of Ghana’s 2019 decision to shut down the financial institution as well as the subsequent High Court ruling that affirmed the action. The appellate court also ordered the receiver to return possession, management and control of the company’s assets and operations to its shareholders.
Background
GN Savings and Loans, formerly known as GN Bank, evolved from First National Savings and Loans (FNSL) and grew into one of Ghana’s largest indigenous financial institutions with branches across the country.
As part of Ghana’s financial sector clean-up exercise initiated in 2018, the Bank of Ghana introduced stricter regulatory and capital requirements for banks and specialised deposit-taking institutions. Following its inability to meet the new minimum capital requirement for universal banks, GN Bank was downgraded to a savings and loans company on January 4, 2019, and subsequently renamed GN Savings and Loans Company Limited.
However, on August 16, 2019, the Bank of Ghana revoked the company’s operating licence, citing insolvency, liquidity challenges, breaches of corporate governance and violations of prudential regulations. The move formed part of the broader banking sector reforms aimed at sanitising Ghana’s financial industry. Eric Nana Nipah was later appointed receiver for the company.
The decision was strongly contested by Groupe Nduom, led by businessman Dr. Papa Kwesi Nduom, who argued that the revocation was unfair and unreasonable. According to the shareholders, the Bank of Ghana failed to adequately consider significant debts owed to the company by the government and some state institutions.
In January 2024, the High Court ruled in favour of the Bank of Ghana and upheld the revocation of the licence. Dissatisfied with the judgment, the shareholders proceeded to the Court of Appeal to challenge the ruling.
The Court of Appeal’s latest decision is being viewed as a major legal victory for Groupe Nduom and has reignited public debate over Ghana’s controversial banking sector clean-up exercise.
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