John Dramani Mahama has defended his government’s decision to revise the producer price of cocoa, warning that failure to act would have plunged the country back into heavy borrowing and renewed economic distress.
Addressing Parliament, President Mahama described the move as “painful but necessary,” insisting that delaying reforms in the cocoa sector would have created severe liquidity challenges and forced the state to contract billions in additional loans.
“Failure to do this would have meant borrowing billions in borrowed funds,” he said. “That unplanned expenditure would have taken us right back to the very devastating economic problem we have only recently begun to escape from.”
The President acknowledged concerns and protests from farmers but assured them that the reforms would ultimately transform the sector and guarantee fairer, more transparent pricing.
“The reforms announced by government will see a total transformation of the cocoa sector and guarantee farmers a fair and transparent price that enables them to meet their production costs and make decent margins,” he stated.
Beyond cocoa, Mr Mahama said the broader economic recovery was gaining momentum. He cited improved foreign reserves covering 5.7 months of imports and attributed part of the gains to the establishment of the Ghana Gold Board, which he said had helped formalise gold exports, reduce smuggling and increase recorded output in the artisanal and small-scale mining sector from 63.6 tonnes to 103 tonnes.
“When the cedi stabilises, imported inflation falls. Businesses can plan better and household incomes improve. All is now set for take-off,” he told the House.
The President also announced plans to tighten public financial management. He revealed that government would introduce legislation to ban sole-sourced contracts except under exceptional circumstances and make it mandatory for parliamentary approval before any state asset is sold or leased.
In addition, he said the Value for Money Office Bill had been laid before Parliament to curb waste, inflated contracts, abandoned projects and chronic cost overruns.
“These measures are intended to improve public trust and accountability,” he stressed.
Touching on the energy sector, the President said his administration inherited an industry on the brink of collapse, burdened with GH¢80 billion in debt, but assured the House that steps were being taken to restore operational and financial stability.
He concluded that the difference between renewed hardship and sustained stability lies in “the exercise of sound economic judgement,” adding that his administration was determined to take decisions that safeguard the collective wellbeing of Ghanaians.
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