The Ghana Cocoa Board (COCOBOD) has disbursed approximately GH¢4.2 billion to Licensed Buying Companies (LBCs) to enable them settle outstanding payments owed to cocoa farmers across the country, many of whom have been waiting since November last year to be paid for their produce. The release of the funds forms part of ongoing efforts to clear arrears within the cocoa sector, restore confidence among farmers, and stabilise the industry’s value chain.
The intervention comes on the back of reforms announced by Finance Minister Cassiel Ato Forson aimed at restructuring Ghana’s cocoa sector and addressing accumulated debts owed to farmers and other stakeholders. The cocoa industry remains a critical pillar of the national economy, providing livelihoods for hundreds of thousands of households, making timely payments to farmers essential for sustained production.
According to COCOBOD’s Head of Public Affairs, Jerome Sam, the funds had already been transferred to the buying companies as of last week to facilitate payments to farmers in cocoa-growing regions. He explained that while some farmers have received payment, others are still awaiting settlement due to differing financial arrangements between COCOBOD and the LBCs. In some cases, farmers were paid earlier because certain companies pre-financed cocoa purchases during a period when COCOBOD faced challenges securing its traditional syndicated loan facility.
Mr. Sam noted that the difficulties in obtaining the syndicated loan in 2023 compelled some Licensed Buying Companies to use their own resources to purchase cocoa from farmers, after which COCOBOD reimbursed them. As a result, payments to farmers have been uneven, with some transactions settled earlier and others delayed. He stressed that COCOBOD is working diligently to settle all outstanding obligations to the buying companies so they can, in turn, clear any remaining payments owed to farmers.
He further indicated that the Board is focused on improving liquidity within the cocoa purchasing system to ensure prompt payment going forward and to support sustained cocoa production across the country’s growing regions. COCOBOD remains optimistic that all outstanding arrears will be fully cleared before the end of the 2025/2026 cocoa season, which typically concludes between August and September.
The GH¢4.2 billion disbursement is widely regarded as a significant step toward rebuilding trust between farmers, buying companies, and regulators after months of uncertainty. For many cocoa farmers whose livelihoods depend on timely compensation for their produce, the release of the funds offers renewed hope for financial stability and a more reliable purchasing system in the seasons ahead.
