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.
Investor demand for Ghana’s Treasury bills surged last week, with the latest primary market auction attracting bids worth GH¢10.03 billion—almost double the government’s fundraising target of GH¢5.67 billion.
Results released by the Bank of Ghana show that the auction was oversubscribed by 77%, reflecting strong investor demand for short-term government securities and renewed confidence in the domestic debt market.
The Treasury accepted GH¢7.38 billion of the total bids, exceeding its financing target by GH¢1.71 billion after taking up a larger share of investor subscriptions.
The 364-day Treasury bill remained the most sought-after instrument, attracting GH¢5.65 billion in bids. The government accepted GH¢4.53 billion of that amount, making it the largest contributor to the funds raised during the auction.
The benchmark 91-day Treasury bill recorded bids of GH¢2.98 billion, with GH¢1.80 billion accepted, while the 182-day bill received GH¢1.40 billion in subscriptions, of which GH¢1.06 billion was accepted.
Yields were mixed across the three tenors. The 91-day bill eased slightly by one basis point to 5.86% from 5.87% at the previous auction, while the 182-day bill remained unchanged at 7.79%. The yield on the 364-day bill, however, climbed seven basis points to 12.99% from 12.92%, indicating continued investor preference for higher returns on longer-term government securities.
The latest auction represents a significant turnaround from the previous sale, which attracted just GH¢4.16 billion in bids. The sharp rise in subscriptions signals growing investor confidence in Treasury bills despite the prevailing interest rate environment.
Looking ahead, the government is targeting GH¢7.36 billion in its next Treasury bill sale under Tender 2016 to finance its short-term borrowing requirements.
Thousands of traders at the Odawna Market in Accra have been left devastated after a massive fire tore through the market on Monday, June 29, 2026, destroying an estimated 3,000 shops.
The blaze, which ripped through one of the capital’s busiest trading hubs, reduced businesses and valuable goods to ashes, leaving many traders with nothing to salvage.
Speaking to Maurice Otoo of kpdonline after the incident, the leader of the Plastic Traders Association, George Ohene Agyei, revealed that the market has about 4,250 shops, with nearly 3,000 of them completely destroyed by the inferno.
He praised President John Dramani Mahama for his swift response and assurance to reconstruct the market to help affected traders get back on their feet.
The association’s head also appealed to civil society organisations, philanthropists, corporate institutions, and the general public to support victims, stressing that many traders financed their businesses through loans and have now lost their only source of livelihood.
As investigations into the cause of the fire continue, affected traders remain hopeful that government and well-meaning Ghanaians will provide the support needed to rebuild their businesses and restore livelihoods.
By Maurice Otoo
Business
GoldBod Purchases Over 135 Tonnes of Gold, Contributes to Cedi Stability and Reserve Growth
The Ghana Gold Board (GoldBod) purchased a total of 135.843 tonnes of gold between January 2025 and May 2026, with approximately 98 per cent sourced from the artisanal and small-scale mining (ASM) sector, Deputy Minister of Finance Thomas Nyarko Ampem has disclosed.
Addressing Parliament, Mr Ampem stated that 135.221 tonnes of the total volume were acquired from the ASM sector, while the remainder came from large-scale mining companies.
According to the Deputy Minister, GoldBod purchased, aggregated and exported 104 tonnes of ASM gold in 2025 alone, generating more than US$10 billion in revenue for the country.
He noted that GoldBod’s operations played a significant role in strengthening Ghana’s economy, contributing to a 41 per cent appreciation of the Ghana cedi in 2025 and boosting the country’s foreign reserves from US$8.98 billion in December 2024 to US$13.8 billion by the end of 2025.
Mr Ampem made the disclosure while responding to questions from the Member of Parliament for Oforikrom, Michael Kwesi Addo, on the quantity of gold purchased by GoldBod, its sources of supply, and expenditure on gold purchases.
The Deputy Minister revealed that GoldBod spent approximately US$16.1 billion on gold purchases between January 2025 and May 2026, with US$9.8 billion of that amount expended during the 2025 calendar year.
He explained that the government’s objective was to transform Ghana’s gold sector by reducing smuggling, formalising trade and ensuring that more value from the country’s gold resources remains within the national economy.
“Through GoldBod, gold is transparently aggregated, assayed, refined and exported, generating foreign exchange and strengthening the country’s reserves with tangible benefits for Ghanaians,” he stated.
Mr Ampem said GoldBod had intensified collaboration with the National Anti-Illegal Mining Operations Secretariat (NAIMOS) to tackle illegal mining activities and improve regulatory compliance within the sector.
He further described GoldBod as a key pillar of Ghana’s macroeconomic recovery strategy, aimed at mobilising foreign exchange and curbing gold smuggling.
Citing reports, including those from Reuters, the Deputy Minister said Ghana lost an estimated US$11.4 billion through gold smuggling between 2019 and 2023, adding that GoldBod’s interventions were helping to reverse the trend.
On licensing, Mr Ampem informed Parliament that as of May 31, 2026, GoldBod had licensed 1,184 gold buyers under its regulatory framework. These comprise two aggregators, 67 self-financing aggregators, 736 Tier Two buyers and 379 Tier One buyers.
He explained that all licensed buyers are required to purchase gold exclusively from licensed miners for onward sale to GoldBod.
Meanwhile, the Deputy Minister disclosed that the Ministry of Finance made its latest payment of GH¢100 million to the Minerals Development Fund (MDF) on June 3, 2026. Combined with earlier transfers made between January and May, total payments to the fund this year amount to GH¢402.4 million.
On cocoa financing, Mr Ampem assured Parliament that government reforms would address recurring payment delays to Licensed Buying Companies (LBCs). He said a new domestic financing model would ensure adequate liquidity for cocoa purchases throughout the year.
He also revealed that a new COCOBOD Bill to be presented to Parliament would prohibit the use of COCOBOD funds for quasi-fiscal activities, which he said had weakened the institution’s finances and affected its ability to meet core obligations.
According to him, excessive borrowing and reliance on costly domestic financing instruments under previous management contributed to COCOBOD’s debt challenges, culminating in defaults on cocoa bill repayments in 2023.
Mr Ampem expressed confidence that the proposed reforms and stricter financial discipline would help eliminate persistent delays in payments to Licensed Buying Companies.
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