Ghana’s new cocoa legislation is facing questions over the extent of stakeholder consultation that preceded its passage, with Ranking Member of Parliament’s Economy and Development Committee, Kojo Oppong Nkrumah, calling for some provisions to be reviewed and refined.
The Ofoase/Ayirebi MP said the Minority does not oppose the broader objectives of the legislation but believes government moved too quickly in finalising provisions that could have significant implications for cocoa farmers, hauliers and processors.
According to him, wider consultation with key players across the cocoa value chain could have helped government develop rules that are more practical and responsive to the realities of the industry.
“We said that there are significant provisions, and I’ll just take two for our conversations this evening. And those significant provisions require that you speak to the cocoa farmers, you speak to the cocoa hauliers, you even speak to the cocoa processors so that the rules that you are making have all of them in mind,” Mr Oppong Nkrumah said.
He raised particular concerns about provisions relating to the repurposing of cocoa farms and payments to farmers.
Mr Oppong Nkrumah argued that while protecting cocoa farms from being converted to other uses is an important policy objective, the law must also take into account the economic realities facing farmers whose livelihoods depend on their land.
He stressed that the Minority’s position should not be interpreted as opposition to reform.
“When we raise challenges with that, it’s not like the Minority is opposing it,” he said. “We are actually saying that the principle of what you want to do, we agree with you, but you are rushing through it and not giving even farmers an opportunity to give you feedback on how you can nuance it in a better way.”
The disagreement highlights a broader question about how economic legislation affecting major commodity sectors should be developed.
Cocoa remains a critical part of Ghana’s rural economy, with decisions made by farmers influenced by farmgate prices, production costs, land values, ageing trees and the potential returns from alternative uses of their land.
While restrictions on the conversion of cocoa farms may help protect Ghana’s productive cocoa base, Mr Oppong Nkrumah believes such measures should be designed with sufficient input from the farmers expected to comply with them.
Similar concerns apply to provisions governing payments and transactions within the cocoa sector. Rules intended to improve accountability and standardise processes could strengthen the industry, but they could also create difficulties if they do not reflect how farmers, licensed buying companies, hauliers and processors operate in practice.
For this reason, stakeholder consultation should go beyond simply meeting affected groups. It can help policymakers identify potential problems and unintended consequences before legislation takes effect.
Mr Oppong Nkrumah’s concerns also raise questions about the pace at which major economic reforms are introduced.
Governments may have legitimate reasons for moving quickly with legislation, particularly when reforms are intended to address longstanding challenges. However, speed can sometimes limit the opportunity for affected stakeholders to scrutinise proposals and suggest practical changes.
The real impact of some provisions may only become clear once enforcement begins. If farmers or businesses encounter problems that could have been identified during consultation, government may later have to amend the rules after disruptions have already occurred.
That, however, does not mean every concern raised by stakeholders should determine government policy.
Government must ultimately make decisions in the national interest, and reforms will sometimes create additional obligations or costs for certain groups.
But broader consultation can improve the quality of information available to policymakers while also helping those affected understand the reasons behind new regulations and what will be expected of them.
The debate is particularly significant because COCOBOD has maintained that farmers and other relevant stakeholders were consulted during the development of the new bill.
This creates an important question over the nature and effectiveness of that consultation.
The issue, therefore, may not simply be whether consultations took place, but whether they were broad and representative enough and whether the concerns raised by stakeholders influenced the final provisions.
Mr Oppong Nkrumah is urging government to take another look at the areas of concern and make adjustments where necessary.
He believes such changes would not amount to abandoning the reform agenda but would instead make the legislation more practical and easier to implement.
For Ghana’s cocoa industry, the success of the new legislation will ultimately depend on how well its provisions work on the ground.
If implementation creates avoidable challenges around land-use restrictions, farmer payments or other aspects of the cocoa value chain, concerns about inadequate consultation could gain further traction.
The new COCOBOD legislation may therefore face its most important test not in Parliament, but in the communities, farms and businesses where its provisions will eventually be implemented.
