The World Bank has acknowledged the significant challenges facing Ghana’s cocoa industry and has committed to providing recommendations to help revitalize the sector.
During a meeting with President John Dramani Mahama on Tuesday, January 8, Ousmane Diagana, Vice President for West and Central Africa at the World Bank, highlighted the untapped potential within Ghana’s agricultural sector, with a particular emphasis on cocoa.
“We have Ghana and Cote D’Ivoire together, even though there are similarities. We have some recommendations that the team can discuss with you at some point and see how we can use our existing programme because we have some dedicated programmes that exist already in Ghana in order to contribute to addressing those challenges that have been mentioned,” he said
Ghana’s cocoa sub-sector experienced a 26% contraction in the third quarter of 2024, marking its fifth consecutive decline and underscoring the persistent struggles of one of the country’s most crucial export industries.
This sharp contraction stands in stark contrast to the broader economy, which grew by 7.2% during the same period. Excluding oil, Ghana’s economy expanded to Ghȼ254 billion in current terms, compared to Ghȼ194 billion in the third quarter of 2023.
The challenges in the cocoa sector, which began in the third quarter of 2023, have deepened throughout 2024. The first quarter of 2024 recorded a steep contraction of 20.2%, followed by consecutive declines of 26% in the second and third quarters, signaling an escalating crisis.
This prolonged downturn poses a significant threat to the stability of Ghana’s cocoa industry, a key driver of rural livelihoods and a vital source of foreign exchange.
