Ghana's Cocoa Sector:Common Problems&Opportunities For Foreign(Chinese) Investment

Cocoa is one of the major driving forces in Ghana's economy as the country remains one ofthe world's largest producers.However,the production output ofthe sector compared to other key sectors should be much higher than it has been over the years.Whilst related studies identify socio-economic and political issues inhibiting production output,the subj ect has rarely been discussed with foreign investment.The objective of this industry research was to identify the common problems inhibiting cocoa farmers and how those problems create opportunities for foreign(Chinese)investment.In doing so,the Eclectic Theory(OLI framework)was used as the foundation for proposing foreign(Chinese)investment to capitalize,as well as,to address the identified gaps,taking into consideration conditions for foreign investment in Ghana and the country's macroeconomic and microeconomic environment.Triangulation was achieved through literature reviews,an interview and a survey.Results from the survey indicated that the 3 most common issues facing the sector(based on priority ratings by 50 cocoa farmers)were Inadequate Funds,Insufficient Agrochemicals and Difficulty in Monitoring&Maintaining Crops;of which Inadequate Funds was rated as the most prioritized and important issue.All cocoa farmers were made to rate the level of importance of each challenge they faced in the sector within a range of 1 to 10.The primary data collected were analyzed both qualitatively and quantitatively,after which 4 foreign(Chinese)investment propositions were made including;Setting up a fund to provide access to finding;Establishing research&development centers to investigate diseases and pests which affect cocoa production;Setting up a Licensed Buying Company of cocoa;and investing in drone technology for easier monitoring and maintenance of crops.A major drawback of this research was that the cocoa farmers who were accessible for the survey were all operating in one cocoa growing region(Eastern Region),hence the results may not necessarily represent the entire sector although the interviewee indicated that cocoa farmers faced similar problems across the country.Nevertheless,this industry research is probably the first that identifies the common challenges faced and prioritized by cocoa farmers in the sector and proposes solutions that involve foreign(Chinese)investment to create win-win situations.