Dr. Frank Bannor, Development Economist and Senior Research Fellow at IERPP
The Institute of Economic Research and Public Policy (IERPP) has cautioned that Ghana’s cocoa industry could collapse within the next decade if illegal mining, popularly known as galamsey, is not decisively eradicated.
In a statement, Dr. Frank Bannor, Development Economist and Senior Research Fellow at IERPP, stressed that illegal mining activities had become the biggest threat to the survival of the cocoa sector, despite its immense contribution to the economy and livelihoods.
According to the him, cocoa remains a key pillar of Ghana’s economy, contributing about 15 percent to the country’s Gross Domestic Product (GDP) and generating substantial foreign exchange earnings. “In 2023, cocoa exports generated over $2 billion in revenue for Ghana,” the statement noted.
The IERPP statement pointed out that the sector provided a primary source of income for over 800,000 smallholder cocoa farm families. These farmers, estimated between 800,000 and 850,000, form the backbone of Ghana’s agricultural economy and support millions more through related commercial, industrial, and service sectors.
Cocoa production
In the statement, Dr. Bannor explained that cocoa production not only sustains households but also enables investments in education, healthcare, and community development.
He, however, warned that these gains were under siege. “Ghana, though a leading global producer supplying around 20 percent of the world’s cocoa, faces challenges such as disease outbreaks and smuggling. But the largest risk the industry faces is land degradation from illegal mining activities,” the institute stated.
The statement revealed that vast acreages of cocoa farms were being destroyed as farmers succumb to the lucrative allure of mining. “Some cocoa farmers are clearing their trees to allow galamsey on their land. The repercussions of these cocoa trees being felled down and lands being sold to illegal miners cannot be underestimated,” the institute cautioned.
IERPP further warned that the ripple effects could be devastating, wiping out jobs and incomes across the value chain. “The over 800,000 direct farmers, the millions who are indirect beneficiaries of the sector, the 10,000 employees of COCOBOD, and the foreign exchange earnings accrued to the economy will all be gone if the government does not step up the fight against illegal mining,” Dr. Bannor emphasised.
The Institute further highlighted the health risks posed by galamsey and how much the state spends heavily on healthcare for affected populations. IERPP has therefore urged immediate government intervention.
“The Institute of Economic Research and Public Policy calls on the Mahama Government to adopt pragmatic measures in the fight against galamsey. We urge all political parties to work with the current administration to combat illegal mining, protect the cocoa industry, safeguard citizens, and strengthen the economy through cocoa sector revenues,” the statement read.
The statement stressed that the fight against galamsey was not only about environmental protection but also about safeguarding Ghana’s economic future. “If this menace continues unchecked, the cocoa industry that has sustained Ghana for over a century could vanish within a generation,” the statement further cautioned.
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