Cocoa smuggling worsens finances of Côte d’Ivoire and Ghana

A surge in cocoa smuggling across West Africa is undermining the economies of Côte d’Ivoire and Ghana,the world’s top cocoa producers,amid record global prices exceeding $10,000 per ton.

The illicit trade,driven by price disparities and weak enforcement,is costing both countries hundreds of millions in lost revenue and threatening the stability of the global chocolate supply chain,a detailed report on the Financial Times showed.

In the 2023–24 season,150,000 tons of cocoa were smuggled out of Ghana,about a quarter of its output,while 200,000 tons left Côte d’Ivoire illegally.

Much of this cocoa is trafficked through porous borders into countries like Burkina Faso,Togo,and Sierra Leone,which report rising exports despite minimal domestic production. The beans are then “washed” and exported as local produce to major processing hubs in Belgium and the Netherlands.

Smugglers exploit the gap between fixed domestic prices and market rates. Ghanaian farmers earn around $4,800 per ton,while smugglers can fetch up to $9,000 in neighboring countries. Despite recent price hikes,farmers still receive only a fraction of the global value,incentivizing illegal sales.

Authorities in Côte d’Ivoire have classified cocoa smuggling as an “economic crime” and expanded legal powers to combat it. Yet corruption remains a major obstacle. In Sipilou,five senior officials were suspended for allegedly accepting bribes. Even military operations face internal theft,with seized cocoa often disappearing before being officially reported.

The crisis is straining public finances. Cocoa revenues account for 15–20% of GDP in Côte d’Ivoire and are vital for debt servicing and public spending. Ghana,recovering from a 2022 default and IMF bailout,has faced payment delays due to smuggling-related supply disruptions.

New EU regulations requiring traceability of cocoa imports from December 2025 could curb smuggling,but industry giants are lobbying for delays. Meanwhile,local cooperatives struggle to retain farmers tempted by higher prices offered by smugglers.

Experts warn that unless domestic prices rise significantly,smuggling will persist,deepening fiscal instability and threatening the livelihoods of millions dependent on cocoa.