Mahama gov’t thinks managing an economy is by pumping dollars – Amin Adam

The Member of Parliament for Karaga, Dr Mohammed Amin Adam, has launched a scathing critique of the Mahama government’s handling of the cocoa sector, arguing that the administration is “managing the economy by pumping dollars” rather than protecting farmers.

Speaking at a press briefing on Thursday, February 13, Dr Amin Adam expressed surprise at the Finance Minister’s announcement of cocoa sector reforms, saying the measures risk short-changing producers.

“We were told that the Minister for Finance was coming to announce what they call a restructuring of the cocoa sector. We are very surprised that the minister rather used the opportunity to shortchange cocoa farmers,” he said.

He stressed that his NPP administration had already developed a comprehensive COCOBOD turnaround strategy in consultation with the IMF, designed to restructure the sector and ensure sustainability.

“Before we left government, we introduced a turnaround strategy for COCOBOD and we worked on this with the IMF. This strategy was intended to comprehensively restructure COCOBOD,” he stated.

“What is happening today in the cocoa sector is not surprising to us because this government has failed to implement the COCOBOD turnaround strategy. That is why COCOBOD is facing these challenges.”

Dr Amin Adam also criticised the government for reducing producer prices rather than providing financial support to COCOBOD.

“Given the scale of the crisis in the sector now, one expected the government to give COCOBOD a bailout as we did during the MPP time rather than reducing the producer price for cocoa. A bailout would have been necessary,” he said.

He further added, “An economy that is better managed cannot pay cocoa farmers? An economy that is better managed reduces the producer price of cocoa?”

He blamed the weakening of Ghana’s cocoa competitiveness on the “reckless overvaluation” of the cedi, which he said had made Ghanaian cocoa more expensive internationally. “Ghana’s cocoa is now considered more expensive… consumers are turning away from Ghana’s cocoa,” he explained.

“When your inflation is 3.8 per cent, your currency should depreciate by at least 3.8 per cent to protect exports. What do we see? They are going around bragging about appreciation. That is poor economics.” He concluded by warning that the sector’s crisis exposed “how this government is recklessly managing the cocoa sector, which has brought us to this unprecedented crisis.”