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Working Paper 53: The Political Economy of the Cocoa Value Chain in Ghana

Written by, Joseph Kofi Teye and Ebenezer Nikoi.

The cocoa sector has, historically, been the backbone of the Ghanaian economy. Many households depend directly on the cocoa sector for livelihoods, and aspects of the cocoa industry, such as input supplies to farmers and cocoa pricing, have historically featured prominently in national and local politics. This paper examines the basic underlying political economy dynamics of the cocoa value chain, with particular focus on how the interests, powers and interactions of various actors along the value chain have contributed to agricultural commercialisation in Ghana. The paper also explores the challenges affecting the cocoa value chain, social difference within the chain, and how various segments of the cocoa value chain have been affected by the COVID-19 pandemic in Ghana since March 2020.