COCOBOD Begins Payments to LBCs to Clear Cocoa Farmers’ Arrears

The Ghana Cocoa Board (COCOBOD) has started disbursing funds to Licensed Buying Companies (LBCs) to help settle outstanding arrears owed to cocoa farmers for beans already delivered.

The move comes after months of payment delays that left many farmers unpaid and raised concerns about the sustainability of Ghana’s cocoa sector. The issue drew national attention on Thursday, February 5, when the Minority in Parliament warned that the situation was causing severe hardship for farmers and threatening the cocoa value chain.

COCOBOD had been accused of owing LBCs more than GH¢10 billion for cocoa already taken over, a development that significantly affected the companies’ cash flow and their ability to promptly pay farmers.

However, the Board says it has made significant disbursements in recent months to ease the pressure.

Speaking in an interview on Citi FM, COCOBOD’s Head of Corporate Communications, Jerome Kwaku Sam, revealed that billions of cedis have been released to LBCs since late 2025.

“In November, we paid 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 pay the LBCs so they can clear outstanding payments to farmers,” he said.

Mr. Sam explained that the delays were largely due to challenges in securing syndicated financing, which compelled COCOBOD to adopt alternative funding arrangements with international cocoa buyers. Under the arrangement, LBCs pre-financed cocoa purchases, with COCOBOD reimbursing them later.

He added that the Board is working with the current administration to establish a more sustainable financing model for the cocoa sector to prevent future payment setbacks.

COCOBOD reaffirmed its commitment to ensuring timely payments to farmers and safeguarding the long-term stability of the cocoa industry, which remains a critical pillar of Ghana’s economy.