Int. J. Accounting and Finance, Vol. 7, No. 1, 2017 11
Copyright © 2017 Inderscience Enterprises Ltd.
Financial literacy of cocoa farmers in Ghana
George Osei Akoto
Akuafo Adamfo Marketing Company Limited,
Durban Road, Ahowdjo Kumasi, Kumasi, Ghana
Email: goseiakoto@ymail.com
Kingsley Opoku Appiah* and
James Kennedy Turkson
School of Business,
Kwame Nkrumah University of Science and Technology,
Kumasi, Ghana
Email: koappiah.ksb@knust.edu.gh
Email: jkturkson364@yahoo.com
*Corresponding author
Abstract: Approximately 800,000 farm families are spread over six of ten
regions of Ghana while empirical evidence on cocoa farmers’ financial literacy
remains sparse. This study examines the level of personal finance literacy
among cocoa farmers. It also examines whether gender, age, level of education
and farm size are related to cocoa farmers’ financial literacy. A structured
questionnaire is employed to collect data from randomly selected 569 cocoa
farmers in the Assin Foso and Twifo Praso districts of the Central region. We
use logistic regression analysis to estimate whether cocoa farmers’
demographic variables are related to their level of financial literacy. We find
that cocoa farmers have lower levels of financial knowledge. The level of
financial literacy of cocoa farmers in Ghana is also related to their geographical
location, age and education levels. This study provides stakeholders in the
finance industry with vital information that will enhance decision making and
policy directions. This study contributes to the literature of financial literacy
from the perspective of cocoa farmers in Ghana, a Sub-Sahara Africa country.
Keywords: financial knowledge; financial capability; financial education;
financial literacy survey; financial planning; Ghana.
Reference to this paper should be made as follows: Akoto, G.O., Appiah, K.O.
and Turkson, J.K. (2017) ‘Financial literacy of cocoa farmers in Ghana’, Int. J.
Accounting and Finance, Vol. 7, No. 1, pp.11–30.
Biographical notes: George Osei Akoto holds an MBA in Accounting Option
from the KNUST School of Business. He also holds a BCom and Diploma in
Commerce from the University of Cape Coast, Ghana. Presently, he is the
Sector Manager in Akuafo Adamfo Marketing Company Limited, a licensed
cocoa company. He has been in this industry for a period of 16 years.
Kingsley Opoku Appiah holds a PhD from the Loughborough University, and
also a Fellow Chartered Certified Accountants-UK and a member of Institute of
Chartered Accountants-Ghana. Presently, he is a Senior Lecturer in Accounting
at the Department of Accounting and Finance, School of Business, Kwame
Nkrumah University of Science and Technology, Kumasi.