The Ghana Cocoa Board (COCOBOD) has disbursed about GH¢4.2 billion to Licensed Buying Companies (LBCs) to facilitate the payment of outstanding arrears owed to cocoa farmers across the country.
The payments are aimed at clearing debts that have accumulated in the cocoa sector since November last year and restoring confidence among farmers and stakeholders within the industry.
The move follows recent reforms announced by the Minister for Finance, Cassiel Ato Forson, aimed at restructuring Ghana’s cocoa sector and addressing financial obligations owed to farmers and other actors along the cocoa value chain.
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Head of Public Affairs at COCOBOD, Jerome Sam, disclosed on Citi Business News that the institution is committed to settling all outstanding payments owed to cocoa farmers before the end of the 2025/2026 cocoa season.
According to him, the GH¢4.2 billion had already been released to Licensed Buying Companies as of last week to enable them to pay farmers who supplied cocoa beans but had not yet received their money.
He explained that while some farmers are still awaiting payment, others have already been paid due to financing arrangements between COCOBOD and the LBCs.
“Some of the payments are recent, while others are older. Since 2023, when we experienced challenges with the syndicated loan, Licensed Buying Companies sometimes stepped in to pre-finance cocoa purchases. COCOBOD later reimburses them for those purchases,” he said.
Mr. Sam noted that the arrangement explains why some farmers are not owed by the LBCs, while others still have outstanding payments.
“As COCOBOD, we are working tirelessly to ensure that every cedi owed to the Licensed Buying Companies is paid so they can also settle any outstanding debts with their cocoa farmers,” he added.
He further indicated that the cocoa regulator remains focused on improving liquidity within the cocoa purchasing system to guarantee prompt payments to farmers and sustain cocoa production in the country’s major cocoa-growing communities.
“We hope to complete all payments before the close of the season, which is expected to end around August or September,” Mr. Sam stated.