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Ghana offers cash rewards in war on cocoa smuggling

Cocoa tree. Photo by Franco Colomba @ Pexels
  • Informants, agents to earn one-third of confiscated cocoa’s value
  • Smuggling drains 160,000 tonnes of beans from Ghana’s output

 

ACCRA, GHANAGhana has rolled out a cash reward scheme to combat rampant cross-border cocoa smuggling, offering informants and anti-smuggling agents a third of the value of any confiscated beans.

The Ghana Cocoa Board (COCOBOD) said the initiative is part of a broader campaign to protect the world’s second-largest cocoa industry from illicit trade that undermines foreign exchange earnings and farmer incomes.

“Under this arrangement, informants and anti-smuggling agents will receive one-third of the assessed value of confiscated cocoa as their reward,” COCOBOD said in a statement on Wednesday.

Mounting losses from cross-border trade

Cocoa smuggling has long plagued Ghana, with traders moving beans across porous borders into neighbouring countries in search of higher farmgate prices. Authorities estimate that about 160,000 metric tonnes of cocoa – more than a third of Ghana’s total output – were smuggled out during the 2023/24 crop season, costing the state millions in lost revenue.

COCOBOD said the reward plan aims to strengthen community participation in anti-smuggling efforts by encouraging residents in border regions to report illegal activities through a dedicated hotline. The regulator assured the public of confidentiality and prompt payment of rewards.

“The measure will help sustain public engagement and protect the future of Ghana’s cocoa industry,” the statement added.

Ghana’s cocoa output has fluctuated in recent years. The 2020/21 season saw a record harvest of about 1.05 million metric tonnes – a 36% increase from the previous year – following productivity initiatives such as free hybrid seedlings and pesticide distribution. But production has since declined sharply, falling to about 531,000 metric tonnes in 2023/24. Output is projected to rebound to around 700,000 metric tonnes in 2024/25 and to 899,000 by 2026.

The new anti-smuggling push comes shortly after the government raised the producer price of cocoa for the 2025/26 crop season to ease cost pressures on farmers and discourage illicit trade. The price has been set at GH₵3,625 per bag, or GH₵58,000 per tonne — a 12.27% rise over the GH₵3,228.75 per bag announced in August.

Anthony Morrison, Chief Executive Officer of the Chamber of Agribusiness Ghana, called the reward scheme a “practical step” to plug cross-border leakages that have long hurt the industry.

“Smuggling thrives not only because of price differences but also due to weak local enforcement and poor economic opportunities in border towns,” Morrison told Allen Dreyfus. “For this initiative to work, COCOBOD must sustain its engagement with communities and ensure farmers are consistently rewarded for staying within the legal supply chain.”

Finance Minister Dr Cassiel Ato Forson said the government’s latest price revision aimed to ensure farmers benefit fairly from high global cocoa prices while maintaining market stability. With the new rate, farmers are expected to earn about GH₵400 more per bag.

Beyond the price adjustment, the minister said COCOBOD would increase the supply of critical farm inputs – including fertilisers, insecticides, fungicides, and spraying machines – all provided free to farmers.

Together, the reward scheme and price hike mark Ghana’s most aggressive effort yet to protect its cocoa sector, which accounts for nearly 30% of foreign exchange earnings amid volatile global markets and rising smuggling pressures.

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