Economist Prof. Peter Quartey has advocated for structural reforms at the Ghana Cocoa Board (COCOBOD), warning that merely reducing salaries will not solve the financial challenges faced by the institution.
His remarks come in response to a decision by COCOBOD’s senior management to implement a 20 percent pay cut, while other management personnel have agreed to a 10 percent reduction as part of efforts to alleviate the Board’s escalating financial strain.
In an interview with Citi Business News, Prof. Quartey stated that although this action sends a positive message, it does not adequately address the underlying inefficiencies within the organization.
“I believe the signaling effect is beneficial. It indicates to farmers, Ghanaians, and the global community that as managers of the cocoa board, you are willing to take some responsibility to tackle the issue.”
Nevertheless, he expressed concerns regarding the actual financial implications of the management’s pay cuts at COCOBOD.
“I would like to know the exact amount this will entail. There’s a 20 percent cut for senior management and a 10 percent cut for other management staff. What does this translate to in terms of funds? How far can this money stretch?”
He argued that a more sustainable approach would involve staff rationalization instead of temporary salary reductions.
“If there are too many employees at COCOBOD, we should consider rationalization. They could be reassigned or transferred to other ministries or agencies where they would be more beneficial, rather than being laid off, especially since jobs are scarce.”
He cautioned against outright layoffs but emphasized that the current wage structure is not viable.
“You cannot simply dismiss employees. It is essential to approach this with compassion… However, maintaining them while paying such high salaries is not a feasible solution.”
Prof. Quartey underscored the importance of restoring efficiency to rebuild trust in the cocoa sector.
In the meantime, the Ghana Cocoa Board (COCOBOD) has declared that its Board of Directors will waive sitting allowances for the rest of the 2025/26 cocoa season to support the ongoing reforms in the sector.
In a public announcement, the Board stated that this decision demonstrates its dedication to prudent financial management, collective sacrifice, and responsible leadership as COCOBOD implements essential reforms to tackle recent issues in the cocoa industry.
