The Ghana Cocoa Board (COCOBOD) has initiated payments to Licensed Buying Companies (LBCs) to facilitate the settlement of outstanding debts owed to cocoa farmers for beans that have already been delivered.
This action comes in response to increasing concerns regarding extended payment delays, which have resulted in many farmers remaining unpaid for several months and have raised alarms about the sustainability of the cocoa industry.
The matter drew national attention on Thursday, February 5, when the Minority in Parliament warned that the situation was causing significant hardship for farmers and jeopardizing the entire cocoa value chain.
COCOBOD has faced accusations of owing LBCs over GH¢10 billion for cocoa that has already been collected, a situation that has severely restricted the cash flow of these companies and hindered their ability to compensate farmers in a timely manner.
Nevertheless, the Board asserts that it has made considerable payments in recent months to alleviate the situation.
In an interview, Jerome Kwaku Sam, the Head of Corporate Communications at COCOBOD, stated that the Board has disbursed billions of cedis to LBCs since late 2025.
“In November, we disbursed over GH¢6 billion, in December, more than GH¢5 billion, and in January, another GH¢6 billion. This month alone, we have paid over GH¢620 million, and we are continuing to make payments to the LBCs so they can settle outstanding debts to farmers,” he explained.
Mr. Sam clarified that the delays in payments were primarily due to challenges in obtaining syndicated financing, which compelled COCOBOD to seek alternative funding solutions with international cocoa buyers. Under this arrangement, LBCs pre-financed cocoa purchases, with COCOBOD reimbursing them at a later date.
He further mentioned that the Board is collaborating closely with the current administration to establish a more sustainable financing model for the cocoa sector to avert a recurrence of such delays.
According to him, COCOBOD is dedicated to ensuring timely payments to farmers and maintaining the long-term stability of the cocoa industry, which is a vital component of Ghana’s economy.
