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Industry has expressed readiness to partner the government to expedite action on its new policy to establish factories that can process cocoa beans and other raw commodities into finished goods for the market.
Consequently, the Association of Ghana Industries (AGI) has opened formal engagements with the Ministry of Trade, Agribusiness and Industry (MoTAI) to scale up in-country value addition by converting raw cocoa beans and other raw materials into cocoa powder, butter, chocolate products and cosmetic ingredients for export as finished products.
Key proposals under discussion include the operationalisation of some of the factories under the One District One Factory (1D1F) programme, as many of them are near completion or capable of running second production shifts to immediately absorb increased processing volumes without waiting years for new plants to be built.
It is expected to deepen industrialisation, create employment, increase foreign exchange inflows and ease pressure on the cedi by capturing greater value from the country’s exports.
“It is time we stopped exporting raw cocoa beans and instead processed them fully in Ghana to maximise value, create jobs and strengthen our economy,” the President of the AGI, Kofi Nsiah-Poku, told the media after the association’s national council retreat in Accra last Friday.
The Minister of Finance, Dr Cassiel Ato Forson, last Thursday conveyed Cabinet’s directive for the allocation of the remaining cocoa beans for the 2025/2026 crop season to local processors.
Also, beginning from the 2026/2027 season, a minimum of 50 per cent of cocoa beans will be processed domestically.
The government will also support the state-owned Cocoa Processing Company (CPC) for it to become the hub of local cocoa processing.
The directive forms part of a broader package of reforms introduced to ensure fair pricing for farmers, strengthen the financial viability of the cocoa sector and safeguard the industry’s long-term sustainability.
Responding to the government’s new policy directive, the AGI president stated that the private sector was fully prepared to support large-scale local processing of cocoa beans into finished and semi-finished products.
Mr Nsiah-Poku explained that discussions with the Ministry of Trade, Agribusiness and Industry had already begun, focusing on setting up decentralised processing plants in cocoa-growing communities to convert beans into cocoa powder, butterfat and other industrial inputs.
He said the objective was to ensure that every component of the cocoa bean was utilised locally, from chocolate drinks and spreads to cosmetic products made from cocoa butter, thereby eliminating the need to export semi-processed beans.
The AGI president stressed that Ghana, as a leading cocoa producer, had to transition from exporting raw materials to exporting finished goods with higher margins.
Mr Nsiah-Poku stated that the country did not need to start from scratch, as several factories established under the district industrialisation initiative were either operational or near completion.
Rather than waiting for years to construct new plants, he proposed expanding capacity at existing facilities, including introducing second production shifts where demand justified it.
Mr Nsiah-Poku said once consistent supply and market access were guaranteed, industry players were ready to scale up immediately.
He added that the approach would accelerate the implementation of Cabinet’s directive while minimising delays and capital constraints.
Beyond cocoa, the AGI president linked local processing to broader macroeconomic stability, arguing that value addition across agricultural commodities would significantly increase export earnings and reduce pressure on the cedi.
Mr Nsiah-Poku cited comparative examples, including cashew processing, where finished products generated substantially higher returns than raw exports, and called for policies that encouraged the consumption of locally manufactured goods over imports.
“It is important that we process what we produce and export value, not raw materials; that is how we can create jobs, earn more foreign exchange and keep our economy strong,” Mr Nsiah-Poku stated.
Mr Nsiah-Poku argued that export controls alone would not deliver the desired transformation unless they were matched with firm import restrictions on finished goods that could be produced locally.
He maintained that Ghana’s industrial growth had often been undermined by the influx of cheaper imported retail products that competed directly with domestic manufacturers.
He explained that allowing unrestricted imports of processed cocoa products, fruit juices and other agro-based goods would weaken the very factories the government sought to promote.
“This does not imply shutting Ghana’s borders, but rather applying calibrated tariffs and regulatory measures to discourage the importation of goods that could be manufactured domestically.
“Several emerging economies have relied on such protective mechanisms during their industrialisation phases,” the AGI president pointed out.
