Farmers Contributory Insurance: COCOBOD’s Ambitious Plan to Raise GH₵74.5m in 2023
Ghana Cocoa Board (COCOBOD) is rolling out a contributory scheme under the new three-tier pension scheme for cocoa farmers.
Nearly 40 years after the institution of the Contributory Insurance for Farmers scheme, the fund is expected to receive its first contribution this year following several failed attempts.
The Contributory Insurance for Farmers provided under section 26 (clause 1) of the Ghana COCOBOD Act 1984 PNDCL 84 aims at improving the living standards of farmers as they save towards their retirement.
The scheme is also to motivate the youth to venture into the cocoa farming landscape.
Approximately 74.5 million cedis is expected to be raised by COCOBOD under the fund for 2023.
Speaking at the opening of the 2023/2024 cocoa season in Tepa, President Akufo-Addo revealed that enrollment has commenced with the expectation of having more cocoa farmers join the scheme.
He indicated that the successful implementation of the scheme was a result of the digitization of the sector.
“The scheme is the first successful attempt to give effect to section 26 (clause 1) of the Ghana COCOBOD Act 1984 PNDCL 84 which provides for the setting up of the scheme.
“This has been made possible because of the implementation of the cocoa managing system which has provided the needed data and digital foundation for the scheme to be successful,” he said.
Chief Executive Officer of COCOBOD, Joseph Boahen Aidoo, believes the new financial measures, including the pension scheme, would enhance productivity in the sector.
He expressed his gratitude on behalf of farmers to the government for implementing the new strategic policies to improve the sector.
“We are grateful to the President. It’s under his administration that we have such a massive transformational agenda in the cocoa sector,” he said.
Meanwhile, Ghana is progressively building a resilient cocoa traceability system in readiness for the European Union’s regulation of deforestation.
The Ghana Cocoa Traceability System (GCTS) is being piloted in the Assin-Fosu Cocoa District to demonstrate the functionality of the system.
It follows collaborations between COCOBOD and GIZ.
Mr. Boahen Aidoo says Ghana is the only country with a National Traceability System globally.
“Beginning 1st January, 2025 the European Union will commence its regulations to ensure any cocoa imported into their market could be traced. We are the only country with a robust traceability system as we ready ourselves for the implementation of the new rules,” he said.