Parliament has passed the Ghana Cocoa Board (COCOBOD) Bill, 2026, introducing sweeping reforms aimed at strengthening Ghana’s cocoa industry through a new governance framework, sustainable financing model, enhanced farmer protection and stricter measures to safeguard cocoa-growing lands.
The legislation, approved under a certificate of urgency, replaces the fragmented legal framework governing the cocoa sector with a single law to regulate, supervise and promote activities across the cocoa value chain.
A major provision of the new law guarantees cocoa farmers not less than 70 per cent of the Free-On-Board (FOB) price of cocoa, making the government’s long-standing policy a legal obligation.
Deputy Finance Minister Thomas Nyarko Ampem said the measure is intended to protect farmers’ incomes from future policy reversals.
The Act also introduces a domestic financing framework to enable COCOBOD to mobilise local resources for the purchase of cocoa beans, reducing its dependence on international syndicated loans following Ghana’s debt restructuring.
To promote industrialisation and value addition, the legislation requires that at least 50 per cent of Ghana’s cocoa production be reserved for local processing, a move expected to stimulate investment in chocolate manufacturing and create more jobs.
In addition, the law strengthens the protection of cocoa farms by making it a criminal offence to unlawfully destroy cocoa trees or convert cocoa-growing lands for other purposes without the necessary approval. Individuals found guilty of illegally cutting down cocoa farms or repurposing cocoa lands will face criminal sanctions under the new law.
The COCOBOD scholarship programme has also been restructured to prioritise courses that support the growth and modernisation of Ghana’s cocoa industry while continuing to benefit children of cocoa farmers.
Although the Minority supported efforts to modernise the cocoa sector’s legal framework, it expressed concerns over aspects of the proposed governance structure, calling for greater institutional independence and reduced external interference in COCOBOD’s operations.
Government says the reforms are designed to revitalise the cocoa sector, improve corporate governance, boost local value addition, protect cocoa lands and secure better incomes for farmers while ensuring the industry’s long-term sustainability.
