Digitalization of Cocoa Value Chain Payments in Ghana

The Ghana Cocoa Board (COCOBOD), in partnership with seven licensed buying companies, has introduced an electronic payment system utilizing mobile money and biometric payment cards to enhance efficiency and reduce transaction risks. This proposal explores the digitalization of payments within Ghana’s cocoa value chain, aiming to address delays in cash-based payments to farmers, which negatively impact their livelihoods and agricultural productivity. This study will assess the impact of this digital payment system on the income and welfare of cocoa farmers through a pilot project and subsequent randomized evaluation. By comparing the outcomes of farmers using digital payments to those still relying on cash transactions, the research seeks to determine whether digitalization can improve financial inclusion, reduce poverty, and enhance the overall cocoa value chain. The findings will inform policy recommendations for scaling digital payment systems in Ghana’s agricultural sector.