Ghana moves to boost cocoa production

In a move to revitalize its struggling cocoa sector, Ghana is planning to acquire large hectares of land for cocoa plantations with the goal of restoring production levels to one million metric tonnes. Tedd George, Chief Narrative Officer at Kleos Advisory, recently joined CNBC Africa to discuss the renewed drive from the Ghanaian government and the potential implications of their intervention in the cocoa industry. George highlighted the importance of this initiative, citing the decline in Ghana's cocoa production due to factors such as lack of investment, mismanagement of resources, and climate change. One of the key aspects of Ghana's strategy is the focus on small holder farmers, who have traditionally dominated the sector. While large plantations are being considered, George emphasized the importance of leveraging digital tools to connect individual farmers to international supply chains. By providing farmers with access to inputs, new plant varieties, financing, and ensuring their cocoa enters the global market, Ghana aims to improve efficiency and productivity in the sector. Despite Nigeria having a larger land allocation for cocoa cultivation compared to Ghana, the country has struggled to match its West African counterpart in terms of output. George attributed Nigeria's challenges to low yields, inadequate storage facilities, and smuggling activities that affect the quality and competitiveness of its cocoa beans. He emphasized the need for improved infrastructure and streamlined processes to unleash Nigeria's potential as a significant cocoa producer. Discussing Ghana's reform efforts, George commended the government's collaboration with key institutions like the Ministry of Finance and the Central Bank to drive sectoral changes. While acknowledging Cocoa Board's operational strengths in logistics and quality control, he suggested outsourcing financing functions to enhance efficiency. By delegating financial responsibilities and focusing on core competencies, Ghana can optimize its cocoa production and market positioning. Looking at Nigeria's plans to establish a cocoa management board, George underscored the necessity for a centralized authority to coordinate sectoral activities. He noted the abundance of entrepreneurial skills in Nigeria but highlighted the importance of aligning diverse stakeholders towards common goals. By leveraging local expertise and enhancing collaboration, Nigeria could strengthen its cocoa value chain and boost production and export capabilities. In terms of global market dynamics, George expressed optimism about the potential impact of Ghana and Nigeria's reform initiatives on the cocoa industry. By adopting models that improve yields, quality, and processing efficiency, West African countries could enhance their competitiveness in the global market. However, challenges such as power supply and bean procurement remain critical hurdles for cocoa processing and value addition. In conclusion, the cocoa industries of Ghana and Nigeria present unique opportunities and challenges as they seek to transform and revitalize their respective sectors. With strategic reforms, enhanced collaboration, and a focus on innovation, both countries can unlock their cocoa potential and contribute significantly to the global chocolate industry.