Former President John Agyekum Kufuor has issued a strong warning that Africa continues to lose significant economic value from its cocoa industry due to its heavy reliance on raw exports, urging governments to prioritise local manufacturing to reverse the trend.
Speaking on the continent’s position in the global cocoa value chain, Kufuor stressed that while Africa produces the majority of the world’s cocoa beans, it captures only a fraction of the profits generated from finished chocolate and related products. Countries like Ghana and Côte d’Ivoire together account for more than 60 percent of global cocoa production, yet most of the value is realised in Europe and North America, where processing, branding, and retail take place.
Kufuor described this imbalance as a structural issue that has persisted for decades, limiting Africa’s ability to fully benefit from one of its most important natural resources. He argued that exporting raw cocoa beans while importing finished chocolate products is economically unsustainable, as it keeps African economies at the lowest end of the value chain.
The former president’s remarks come at a time when global cocoa markets are experiencing volatility, with supply challenges, climate pressures, and pricing disputes increasingly affecting farmers and producing nations. Despite rising global demand for chocolate and cocoa based products, African producers continue to face low margins, fluctuating prices, and limited control over international markets.
Industry data from organisations such as the International Cocoa Organization shows that while Africa dominates production, the bulk of profits in the cocoa industry comes from processing, branding, and retail. This includes activities such as grinding cocoa into butter and powder, manufacturing chocolate, and marketing finished goods to consumers.
Kufuor emphasised that without significant investment in these downstream activities, African countries will remain dependent on volatile commodity markets. He called for a coordinated strategy that includes building processing factories, supporting local entrepreneurs, and creating policies that encourage industrialisation within the cocoa sector.
His argument aligns with ongoing efforts by governments in Ghana and Côte d’Ivoire to push for greater control over cocoa pricing and value addition. In recent years, both countries have introduced initiatives aimed at increasing local processing capacity and improving farmer incomes, including the implementation of a Living Income Differential to secure better prices for cocoa producers.
However, experts say progress has been slow due to several challenges, including limited infrastructure, high energy costs, access to financing, and competition from established global chocolate manufacturers. Multinational companies dominate the higher value segments of the industry, making it difficult for African firms to scale up and compete internationally.
Kufuor also highlighted the need for stronger regional collaboration, suggesting that African countries should work together to develop a unified approach to cocoa industrialisation. By pooling resources and coordinating policies, he argued, the continent could build a more competitive and resilient cocoa industry capable of capturing a larger share of global revenues.
Beyond economics, the issue also has social implications. Millions of smallholder farmers across West Africa depend on cocoa for their livelihoods, yet many continue to live in poverty due to low farm gate prices and limited access to value added opportunities. Expanding manufacturing capacity could create jobs, boost incomes, and stimulate broader economic development.
The call for industrialisation fits into a wider continental agenda under frameworks like the African Union and the African Continental Free Trade Area, which aim to promote intra African trade and reduce reliance on raw commodity exports. By moving up the value chain, African economies can diversify, strengthen resilience, and reduce vulnerability to global price shocks.
Kufuor’s message is clear and direct: Africa’s cocoa sector cannot continue operating as a supplier of raw materials while others reap the rewards of finished products. Without deliberate investment in manufacturing, the continent risks missing out on billions in potential revenue and long term economic transformation.
As global demand for chocolate continues to grow, the opportunity remains open. The challenge now is whether African governments, investors, and industry players can act decisively to turn cocoa from a raw export commodity into a driver of industrial growth and economic empowerment.