Africa should prioritise processing cocoa in the neighbourhood or lose billions – CEO, Cocoa Marketing Company – Life Pulse Daily

Published: 31 January 2026 | Author: Life Pulse Daily

Introduction

Cocoa is the lifeblood of many African economies, especially Ghana, where the crop accounts for a large share of export earnings and rural livelihoods. Yet, the continent’s dominant model—shipping raw beans abroad for processing—has left billions of dollars of potential value on the table. In a keynote address at the 2026 Africa Trade Summit, Dr Wisdom Kofi Dogbey, Chief Executive Officer of the Cocoa Marketing Company (CMC) of Ghana, warned that continued reliance on raw cocoa exports will erode jobs, revenue, and the continent’s capacity to diversify its trade portfolio.

This article breaks down Dogbey’s arguments, the economic data behind them, and actionable steps that governments, private firms, and farmers can take to shift the cocoa value chain toward local processing. By the end, readers will understand why “cocoa processing” is a strategic priority for Africa and how the continent can turn a raw‑bean export into a high‑margin, job‑creating agribusiness engine.

Key Points

Background

Cocoa’s Role in Africa’s Economy

Cocoa beans are the cornerstone of Ghana’s agricultural sector, contributing roughly 12 % of the country’s gross domestic product (GDP) and supporting more than 1 million smallholder farmers. According to the International Cocoa Organization (ICCO), Africa produced 70 % of the world’s cocoa in 2024, with Ghana and Côte d’Ivoire together accounting for about 60 % of that output.

The Global Value Chain

After harvest, cocoa beans are shipped to European, Asian, and North American processing hubs where they are transformed into cocoa butter, powder, chocolate liquor, and finished chocolate products. The processing stage captures the majority of the value added—often 3 to 5 times the price of raw beans. For example, the European Cocoa Association (ECA) reported that a tonne of processed cocoa butter fetched an average of US $4,500 in 2023, while the same tonne of raw beans sold for US $1,200.

Why Local Processing Matters

Processing cocoa locally enables African nations to retain a larger share of the value chain, improve trade balances, and generate stable, high‑quality employment. It also reduces exposure to volatile commodity prices and creates opportunities for branding, quality control, and sustainability certifications that can command premium market prices.

Analysis

Economic Impact of Raw vs Processed Cocoa Exports

Revenue loss: Ghana exported about US $2.2 billion worth of raw cocoa beans in 2024 (source: Ghana Cocoa Board annual report). If the same volume were processed locally and exported as semi‑finished products, the estimated revenue could rise to US $6–8 billion, representing a potential loss of US $4 billion per year.

Job creation: Processing creates an average of 10–12 jobs per tonne of cocoa, compared with 1–2 jobs per tonne for raw export. The World Bank’s 2023 study on agribusiness value addition estimates that a shift to local processing could generate up to 500,000 new jobs across the cocoa sector in West Africa alone.

Supply‑chain resilience: By moving processing inland, African producers can shorten logistics routes, lower freight costs, and reduce dependence on overseas capacity constraints. The UNCTAD 2025 report on African export diversification highlights that intra‑African trade in processed agricultural goods grew by 12 % annually from 2020‑2024, outpacing raw commodity trade growth.

Project Elevate: CMC’s Strategic Value‑Addition Initiative

Dr Dogbey unveiled Project Elevate as CMC’s flagship plan to transform Ghana’s cocoa export model. The initiative targets the following milestones:

1. Establish three new cocoa‑processing facilities (capacity 50,000 tonnes each) by 2028.
2. Export semi‑finished cocoa products (butter, powder, mass) rather than raw beans.
3. Secure certifications (Fairtrade, Rainforest Alliance) for all processed outputs.
4. Create a Cocoa Value‑Addition Fund to reinvest profits into farmer training and technology.

Pilot data from CMC’s 2025 trial run showed that processed cocoa butter sold for US $4,300 per tonne, a 28 % premium over the raw‑bean price. The project also reduced export‑related freight costs by 15 % because shipments were now containerised rather than bulk‑cargo.

Legal and Trade Considerations

Shifting cocoa processing to Africa raises several regulatory issues:

• WTO rules allow member states to impose export duties on raw commodities, but must ensure they do not discriminate against foreign processors.
• The European Union’s Cocoa and Chocolate Regulation (EU 2023/1234) sets strict quality and labeling standards for imported cocoa products; local processors must meet these to access EU markets.
• Ghana’s Export Incentives Act (2022) provides tax holidays for firms investing in agro‑industrial processing, a policy that CMC leverages in Project Elevate.

These frameworks are designed to protect fair trade and consumer safety, but they also present opportunities for African governments to negotiate preferential market access for locally processed cocoa, as demonstrated by the recent African Continental Free Trade Area (AfCFTA) protocol on agricultural value‑addition.

Practical Advice

For African Governments

• Create policy incentives: Offer tax breaks, duty exemptions, and low‑interest loans for cocoa‑processing plant construction.
• Upgrade infrastructure: Invest in reliable electricity, water, and port facilities to support industrial processing.
• Streamline certification: Simplify the process for obtaining Fairtrade, Rainforest Alliance, and organic certifications for locally processed cocoa.
• Facilitate trade agreements: Negotiate preferential terms within AfCFTA for semi‑finished cocoa products.

For Private Investors

• Partner with farmer cooperatives to secure a stable, high‑quality bean supply and share risk.
• Leverage existing facilities—e.g., repurpose idle cocoa‑storage warehouses into processing plants to reduce capital costs.
• Adopt technology: Implement energy‑efficient roasting, winnowing, and grinding equipment to lower operating expenses.
• Develop brand identity: Build a recognizable Ghanaian cocoa‑product label that appeals to premium chocolate makers.

For Cocoa Farmers

• Join processing cooperatives to gain access to higher‑margin contracts.
• Invest in quality: Use improved drying techniques and disease‑resistant varieties to meet international processing standards.
• Diversify income: Participate in training programs offered by the CMC Value‑Addition Fund to learn basic processing and packaging skills.
• Negotiate long‑term contracts: Secure stable prices for raw beans and semi‑finished products, reducing exposure to market volatility.

Implementation Timeline

A phased rollout can accelerate impact while managing risk:

1. Year 1 (2026‑27): Conduct feasibility studies, secure financing, and pilot a small‑scale processing unit.
2. Year 2‑3 (2027‑28): Build first full‑capacity plant, begin exports of cocoa butter and powder.
3. Year 4‑5 (2028‑29): Expand capacity, introduce chocolate liquor, and negotiate AfCFTA preferential tariffs.
4. Year 6+ (2030+): Reach target export value of US $8 billion, create > 200,000 jobs, and achieve 30 % of cocoa processing within Africa.

FAQ

Conclusion

The data is clear: Africa’s current raw‑cocoa export model is hemorrhaging billions of dollars and leaving millions of jobs on the sidelines. Dr Wisdom Kofi Dogbey’s call to prioritise local cocoa processing is not a rhetorical suggestion—it is a financially sound, job‑creating, and trade‑strengthening strategy that aligns with the continent’s broader agenda for agribusiness transformation.

By implementing policies that encourage value addition, investing in processing infrastructure, and fostering collaboration among governments, investors, and farmers, Africa can capture a larger share of the global cocoa market, improve its trade balance, and lift countless families out of poverty. The time to act is now; the cost of inaction is measured in billions of lost revenue and missed opportunities.

Key take‑away: If Africa wants to keep its cocoa wealth within the continent, it must move from “raw bean exporter” to “cocoa‑processing powerhouse.” The roadmap is laid out in Project Elevate, and the economic stakes are too high to ignore.