Boosting the industrial capacity of Ghana in artisanal chocolate processing; a financial feasibility study

Abstract

Ghana, the world's second-largest cocoa producer, contributes nearly 45 % of global cocoa output but processes only 5 % domestically into high-value products. This study evaluates the financial feasibility of small-scale artisanal chocolate processing in Ghana. A case study in the Ga East district utilized capital budgeting techniques—discounted Net Present Value (NPV), Benefit-Cost Ratio (BCR), Internal Rate Of Return (IRR), and payback period. Findings indicate that an initial investment of GH₵29,776 (US$5,125) and annual operating costs of GH₵40,415 (US$6,957) are required. With a 27 % opportunity cost of capital, the financial appraisal shows a positive NPV of GH₵107,637 (US$18,525), a BCR of 1.75, and an IRR of 108.62 %. The payback period is estimated at 7 months. Investing in artisanal chocolate processing is financially viable and could positively impact local economic development and job creation. The study concludes that investment in entrepreneurship programmes,providing finacial support, and simplifying regulatory framework will improve artisanal enterprise chocolate processing.