Ghana has lost more than $1.1 billion to cocoa smuggling between the 2021/22 and 2024/25 seasons, with tens of thousands of tonnes flowing across borders into Côte d’Ivoire and Togo, according to official Ghana Cocoa Board (COCOBOD) data.
The smuggling undermines national revenue, farmer livelihoods, and economic stability in a sector long considered the nation’s brown gold. COCOBOD data shows the heaviest losses occurred in 2023/24, when 253,212 tonnes were smuggled, costing the state an estimated $658.3 million.
In 2021/22, smuggling reached 137,728 tonnes with losses of $352.6 million. The following season saw 52,690 tonnes smuggled for $131.7 million in losses. The 2024/25 season recorded 29,623 tonnes smuggled, resulting in $143.7 million in state losses.
These losses affect everyone in the cocoa supply chain. Licensed Buying Companies (LBCs) lost over GH¢1.6 billion, while hauliers reported losses near GH¢182 million over the four year period.
Farmers often sell cocoa across borders where prices are 20 to 30 percent higher, creating incentives for smuggling. The price gap fuels networks that exploit porous borders in key cocoa growing regions.
The Western North, Western South, Volta, and Brong Ahafo regions serve as the main exit points, allowing tens of thousands of tonnes to flow out annually. Smuggling networks remain deeply entrenched and often operate with local knowledge of unapproved routes.
The government, through COCOBOD, has outlined measures to curb smuggling, including raising producer prices to make official channels more attractive, strengthening border monitoring with national security agencies, and implementing public education campaigns in border communities.
However, experts point out that such measures have been repeated for years with limited effect. Without a more comprehensive approach, these interventions alone are unlikely to stop the steady outflow.
Cocoa is Ghana’s second largest source of foreign exchange after gold. Every tonne lost to smuggling reduces foreign reserves, weakens the cedi, and pushes up inflation. The losses also limit funding for cocoa roads, farmer support programs, and other sector investments.
Addressing the crisis requires closing the price gap with neighboring countries to reduce illegal export incentives. Investment in technology, such as satellite monitoring, digital farmer identification cards, and tracking systems from farm to port, can help ensure cocoa reaches official channels.
“COCOBOD’s data highlights the urgent need for action,” industry analysts note.
Without decisive measures, Ghana’s cocoa sector faces slow decline, threatening both farmer livelihoods and national economic stability.
