Ghana's new cocoa law: Every restriction, penalty and what cocoa farmers can still do

• The Ghana Cocoa Board Bill, 2026, would prohibit the conversion of cocoa farms without government approval once it becomes law.

• Farmers who illegally convert cocoa farms or engage in illegal mining on cocoa land could face severe criminal penalties.

• The bill also introduces new benefits, including a guaranteed minimum cocoa price, pension scheme and education support for farmers.

The Ghana Cocoa Board Bill, 2026, passed under a Certificate of Urgency on July 31, 2026, introduces tougher protections for cocoa farms, stiffer penalties for illegal activities and new welfare measures for farmers. However, the bill is not yet law, as it is still awaiting President John Dramani Mahama's assent.

Once signed, it will replace the Ghana Cocoa Board Act, 1984 (PNDCL 81) and other related laws with a single legal framework aimed at modernising Ghana's cocoa industry.

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One of the bill's most significant provisions is the designation of all cocoa farms as protected land.

Under the proposed law, farmers would no longer be allowed to convert cocoa farms to other uses without prior government approval. This means cocoa land could not legally be cleared for real estate development, non-cocoa farming or any other purpose unless authorised by the relevant authorities.

Supporters of the measure argue that it is intended to safeguard Ghana's cocoa industry, improve sustainability and help the country comply with international requirements, including the European Union's anti-deforestation regulations.

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The bill introduces some of the toughest penalties ever proposed for offences involving cocoa farms.

According to the bill, anyone who converts protected cocoa land without authorisation could face up to 20 years' imprisonment.

The legislation also targets illegal mining, popularly known as galamsey, on cocoa farms. Offenders could face between 10 and 20 years in prison, in addition to financial penalties calculated based on the number of cocoa trees destroyed.

Existing sanctions for cocoa smuggling remain in place. Individuals convicted of smuggling cocoa beans can be jailed for between five and 10 years, while licensed buying companies found guilty risk losing their operating licences.

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The proposed restrictions have sparked concern among some cocoa farmers and opposition lawmakers.

Farmer representative Moses Djan Asiedu, Administrator of the Ghana Cooperative Cocoa Farmers and Marketing Association Limited, argued that many farmers use their own resources to acquire land, establish cocoa farms and maintain them for years before earning returns.

He believes that if cocoa farms are to receive protected status, government support for farmers should also be strengthened to reflect the public interest in preserving cocoa production.

The Minority in Parliament also criticised the decision to pass the bill under a Certificate of Urgency. Kojo Oppong Nkrumah, MP for Ofoase Ayirebi and Deputy Ranking Member on Parliament's Economy and Development Committee, argued that legislation affecting more than 800,000 cocoa farmers and the livelihoods of over four million Ghanaians deserved wider public consultation.

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While the bill introduces new restrictions, it also provides several protections and benefits for cocoa farmers.

Among the key provisions is a legal guarantee that farmers receive at least 70% of the gross Free-on-Board (FOB) export price for cocoa.

The bill also requires at least 50% of Ghana's cocoa beans to be processed locally to promote value addition and create jobs.

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In addition, it establishes a Cocoa Farmers Pension Scheme, an Educational Trust Scheme to support farmers' children, a Cocoa Stabilisation and Diversification Fund, and a Cocoa Sector Debt Sinking Fund.

The legislation also creates a Dispute Resolution Committee and a Cocoa Board Tribunal to resolve licensing and regulatory disputes, while preserving the right to appeal tribunal decisions at the High Court. It further gives statutory backing to the Producer Price Review Committee, which recommends Ghana's producer price for cocoa each season.

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The Ghana Cocoa Board Bill, 2026, has not yet taken legal effect because it is still awaiting presidential assent.

If President Mahama signs the bill into law, the Ministry of Food and Agriculture, the Ministry of Finance and the Ghana Cocoa Board (COCOBOD) are expected to issue implementation guidelines.

Until then, the proposed restrictions, penalties and farmer benefits remain subject to the final enactment of the legislation and any subsequent regulations.