IMF recommends close monitoring of COCOBOD by Finance Ministry

In 2023, COCOBOD recorded a sharp reversal driven by a substantial decline in cocoa output, a steep increase in producer prices, and adverse hedging outcomes, as forward contracts were executed at prices below prevailing international market levels amid sharp global price increases, it disclosed in its Technical Assistant Report on the theme “Advancing SOEs Fiscal Risks Management, Financial Oversight, Governance and Investment Implementation".

The International Monetary Fund is recommending the close monitoring of the Ghana Cocoa Board (COCOBOD) by the Ministry of Finance due to its high leverage and significant exposure to market risks.

Also, the company profitability and its solvency are subject to significant risks due to any potential volatility in market conditions, such as cocoa price and supply.