Cocobod’s controversial request to draw 3% from the Bank of Ghana’s reserves has been met with sharp criticism from Professor Isaac Boadi, a banking consultant and Dean of the Faculty of Accounting at the University of Professional Studies, Accra (UPSA).
Describing the proposal as potentially dangerous to Ghana’s economic stability, Prof. Boadi warned that depleting central bank reserves could weaken the cedi in the face of future external shocks and undermine macroeconomic gains.
His remarks come amid growing concern over the board’s financial sustainability and its continued reliance on state-backed interventions to support Licensed Buying Companies (LBCs).
In a politically charged statement, Prof. Boadi called on Cocobod to explore more sustainable and market-friendly approaches, including leveraging private sector partnerships and issuing government-backed bonds.
The development has stirred debate in policy circles, especially as Ghana navigates a post-IMF recovery path where monetary discipline remains crucial.
Critics argue that drawing from national reserves for sector-specific bailouts sets a dangerous precedent and signals fiscal indiscipline. As pressure mounts, the government is being urged to publicly clarify its position, while Cocobod faces growing calls to reform its financing model and wean itself off public funds.
