IERPP Warns- Cocoa Sector Collapse Threatens Ghana’s Security and Economy

The Institute of Economic Research and Public Policy (IERPP) has issued a stark warning to the Ghanaian government, characterizing the recent downturn in the cocoa sector as a direct threat to national security and economic stability.

This alarm follows the government’s controversial decision to slash the cocoa producer price from GH₵3,625 to GH₵2,587, a move the IERPP claims could trigger a systemic collapse.

In a statement led by Executive Director Professor Isaac Boadi, the institute highlighted that this price reduction has been widely rejected by farmers, who remain unconvinced by the state’s justification. With over one million people directly dependent on cocoa for their livelihoods, the financial strain is expected to drive seasoned farmers away from the industry while deterring new entrants.

This mass exodus threatens the viability of a sector that has historically served as a cornerstone of Ghana’s economy alongside gold and oil.

The consequences extend beyond simple economics; the IERPP warns of a looming “environmental and security emergency.” As cocoa farming becomes less profitable, desperate landowners may abandon their crops or sell their land to illegal miners. This shift would likely accelerate the “galamsey” crisis, further devastating Ghana’s environment and fueling social unrest in rural communities.

To mitigate these risks, the IERPP is calling for immediate intervention. The institute urges the government to reconsider the new pricing structure and restore the previous rate of GH₵3,625, arguing that protecting the cocoa sector is essential to maintaining the country’s broader social and fiscal order.

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Source:myjoyonline