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Cocoa Price Cut Sparks Fears Over Environmental Sustainability and Illegal Mining Surge

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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.

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ECOWAS Bank for Investment and Development Backs Women of Valour as London 2026 Headline Sponsor

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Women of Valour (WoV), the globally recognised women’s leadership and storytelling platform founded by award-winning journalist Nana Aba Anamoah, has announced the ECOWAS Bank for Investment and Development (EBID) as the Headline Sponsor for Women of Valour London 2026. The event is scheduled for 7 March 2026.

This partnership brings together two organisations dedicated to advancing women’s leadership, economic inclusion, and social transformation across Africa and the global diaspora. As Headline Sponsor, EBID will be instrumental in supporting the platform and amplifying conversations centredon courage, development, and the pursuit of fearlessness, which is the official theme of Women of Valour London 2026.

Women of Valour is an annual flagship event held in celebration of International Women’s Day, spotlighting women whose stories of courage, resilience, and leadership inspire change across generations. Since its inception, the platform has grown from its origins in Accra to international stages, convening influential voices from media, business, public service, and civil society.

Speaking on the partnership, founder Nana Aba Anamoah noted that EBID’s headline sponsorship reflects a shared commitment to long-term impact. “Women of Valour was created to honour courage and amplify the voices that shape our societies. EBID’s support goes beyond sponsorship. Itrepresents a belief in women as drivers of development and progress, both on the continent and throughout the diaspora.”

Dr. George Agyekum Donkor, President and Chairman of the Board of Directors of EBID, reaffirmed the Bank’s dedication to gender inclusion and development-focused partnerships. “At EBID, we believe that empowering women is fundamental to sustainable development. Our partnership with Women of Valour is especially key in the current context as we prepare to obtain certification for the Gender Equality Seal for Public Institutions,” stated Dr. Donkor.

The announcement comes ahead of the official launch of Women of Valour London 2026, which will be held on February 17, 2026, at the residence of the British High Commissioner to Ghana in Accra. This event will mark the beginning of the global campaign leading up to the London gathering.

About Women of Valour

Women of Valour (WoV) is a leadership and storytelling platform that celebrates women with powerful stories of courage in recognition of International Women’s Day. Founded by Nana Aba Anamoah, WoV brings together influential women from diverse sectors to inspire dialogue, mentorship, and action across borders.


About EBID

The ECOWAS Bank for Investment and Development (EBID) is the Development Finance Institution of the Economic Community of West African States (ECOWAS), mandated to finance projects and programmes that foster regional integration, sustainable development and inclusive economic growth.

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Ghana Reference Rate Falls to 14.58% in February on Improved Market Indicators

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The Ghana Reference Rate (GRR), the benchmark used by commercial banks to price loans, declined marginally to 14.58 percent in February 2026, down from 15.68 percent in January.

The reduction reflects improvements in key variables used to compute the rate, including the Monetary Policy Rate, Treasury bill yields, and interbank market rates.

According to market data, the 91-day Treasury bill rate stood at 11.19 percent at the end of January, while the interbank rate averaged 14.91 percent over the same period. The Bank of Ghana’s recent cut in the Monetary Policy Rate to 15.5 percent was a major contributor to the February decline in the GRR.

The GRR was last reviewed downward on January 7, 2026, when it fell from 15.9 percent in December 2025 to 15.68 percent. In December, the rate had declined following a 350-basis-point cut in the Monetary Policy Rate to 18 percent, alongside a modest drop in Treasury bill rates.

Earlier, in November 2025, the GRR edged up slightly to 17.96 percent from 17.86 percent, driven by rising Treasury bill and interbank rates.

Overall, the benchmark rate trended downward through much of 2025, falling sharply from 29.72 percent in January to 19.67 percent by August.

Background to the GRR

The Ghana Reference Rate was introduced in 2017 by the Bank of Ghana in collaboration with the Ghana Association of Banks to serve as a transparent and consistent benchmark for loan pricing.

It replaced the previous base-rate system following extensive consultations, with the aim of promoting fairness and clarity in lending. The maiden GRR, announced in April 2017, stood at 16.82 percent.

Implications for Borrowers

The latest decline in the GRR could ease borrowing costs marginally in the coming month, particularly for customers on variable-rate loans contracted in February 2026.

While borrowers on fixed-rate loans will not benefit from the adjustment, those on variable rates may see slight reductions depending on individual bank pricing models.

Commercial bank lending rates, which averaged around 22 percent in January 2026, could be adjusted downward in line with the new benchmark.

However, the relief comes amid continued tight credit conditions, as liquidity constraints persist due to measures aimed at controlling inflation and stabilising the economy.

President of the Ghana National Chamber of Commerce and Industry, Stephane Miezan, noted that businesses are grappling not only with high borrowing costs but also limited access to credit from commercial banks, a situation he warned has contributed to the collapse of some firms.

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BoG rolls out fintech and digital payment reforms to boost intra-African trade

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The Bank of Ghana (BoG) has announced a series of regulatory and digital infrastructure reforms aimed at strengthening cross-border payments and promoting inclusive economic growth across Africa.

The Second Deputy Governor of the BoG, Matilda Asante Asiedu, disclosed this at the 2026 Africa Prosperity Dialogue held at the Accra International Conference Centre on Wednesday, February 4.

She said the initiatives are designed to address persistent challenges such as payment interoperability gaps, limited regulatory trust, and consumer protection concerns, which continue to hinder intra-African trade and financial integration.

A key intervention, she noted, is the FinTech Passport, a joint framework between the Bank of Ghana and the Bank of Rwanda that allows for cross-border licensing of fintech companies.

The arrangement, she explained, promotes regulatory cooperation and trust among participating countries and could be expanded across the continent to support seamless cross-border payments and trade.

Mrs Asiedu also highlighted the Bank’s Next Generation Digital Public Infrastructure initiative, which is currently piloting multilateral interoperability frameworks, settlement systems, and potential cross-border currency arrangements.

She said these efforts are intended to build a more integrated, efficient, and resilient payment ecosystem for Africa.

In addition, she pointed to the recently enacted Virtual Asset Service Providers Act as a major regulatory milestone that supports emerging digital payment channels while ensuring robust consumer protection and effective risk oversight.

Mrs Asiedu stressed that payment systems are critical national and continental infrastructure, requiring strong cybersecurity safeguards, coordinated regulation, and trusted governance structures.

She added that the broader goal of the reforms is to advance inclusive growth and ensure that Africa’s digital and financial transformation delivers benefits across all sectors of society.

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