Question 2: Key Success Factors: Cocoa crop is largely cultivated in Ghana and it is extreme revenue earner for the

government too. The industry is fully backed by government support in the areas of cultivation, evaluation, transportation and most significantly in export of cocoa to overseas markets. The industry earned US $ 1 billion by just exports in 2003/2004. There are many factors which are pulling off high success rate of this industry, amongst them government support is appreciable. Apart from that, farmers are highly motivated to their work, distributors have easy access to international markets and rating institutes are free of corruption. All such factors are indeed responsible for premium quality production of cocoa in Ghana. Moreover, there are many key factors which are making cocoa industry to touch sky heights locally and internationally.

Zero Torrelance Corruption Policy: Firstly, the most notable key factor is zero torrelance policy; that means this industry to not prone to corruption. The quality is unmatchable and there are hundreds of people involved in the whole process from production to supply. Farmers are highly incentivized and they are expert in their work. The industry is even though to be resource curse which means that natural resource industries are mostly prone to corruption and high political influence. But this is not the case with coca in Ghana. Even though the government runs all the marketing activities of cocoa and revenues flew from government channel but the industry is still high earner both for the producers, labor as well as the government. The efficient governmental reforms made Ghana to score only 3.7 out of 10 on Perceptions Index by Transparency International which means Ghana is least corrupt. The reason for being least corrupt state prevails to the question; how such thing is possible? The evident reason is that governmental officials are highly paid which in turn motivates to perform their duties at fullest.

Cocoa Marketing Board: Another key factor of cocoa success is cocoa marketing board. The board which was the part of British marketing boards was later on called Cocoa Marketing Board in 1947. The British raj helped initiate the marketing activities of cocoa and established key marketing channels for cocoa. Ghana at its independence in 1957 was largest producers of cocoa, and was relatively respectable nation compared to rest of Africa. Governmental Reforms of Jerry Rawlings Presidency: After the independence of Ghana, when cocoa was highly overtaxed and politicalized the production of cocas drastically decreased. But the position got controlled by the leadership of Jerry Rawlings Provisional National Defense Council whose reforms not only saved the industry to cocas but the productions also increased steadily. The governmental reforms in 1983

onward are also regarded one of the key success factors of cocoa industry. During such reforms, producers prices were raised by freeing up inflated cocoa public sector. Unnecessary governmental officials and employees were highly reduced which in turn added up to the revenues of this industry. Such reforms resulted in increased profits of every member in the channel even the labor was also highly paid. Liberalization of State owned PBC: The governmental reforms also included opening up of internal marketing system in 1992/93. Produce Buying Company which was a government sponsored and owned company was also liberalized. PBC was previously responsible for buying and selling activities of cocas but after the reform the company was listed on stock exchange and opened to private competition. This act of government allowed other private owners to come into the business and play their role in stabilizing the unbalanced economy of Ghana. Governmental Support & Quality Check: The premium success factor in cocoa success is governmental support. The whole producer/buyer channel is monitored and supported by state government of Ghana. The marketing is taken care by state department Cocabod which is state-run marketing board. Further, Cocobod is under the Ministry of Finance therefore the department is highly monitored by governmental officials to avoid ignorance. The marketing process begins with processing of cocas at farmers end and leads to governmental exports. Licensed Buying Companies (LBCs) are responsible for purchase of cocas at nationwide price ceiling or the producer price which is basically to ensure uniformity throughout the process. To ensure premium quality cocoa, Quality Control Department (Cocobods Quality Control Division) work closely with other departments. All such factors make Cocoa Industry highly successful in Ghana. Below is production chart of Cocoa over the years, governmental reforms lead to high production level in later years.

Strong Credit Return Policy: Another plus point behind the success story is the strong credit history of Ghana in market both domestically and internationally. Cocobod borrowed for the first time in 1993 and 1994 due to insufficient balances in domestic market to lend to this industry. Due to its consistent paying behavior and excellent repayment history world banks were willing to lend to this market by 1998. Such acts taken by Cocobod were later benchmarked by Nigeria too.