COCOBOD raises alarm over diversion of funds to purchase smuggled Ivorian cocoa

The Ghana Cocoa Board has accused some officials within Licensed Buying Companies (LBCs) of misusing government funds to purchase cheaper cocoa beans smuggled from Côte d’Ivoire, a practice it says is harming local farmers and threatening Ghana’s reputation for high-quality cocoa.

According to Jake Kudjo Semahar, Director of Special Services at COCOBOD, the situation has been detected across four regions along the Ghana–Côte d’Ivoire border, reversing the earlier trend where Ghanaian cocoa was smuggled into neighbouring countries.

He explained that the development is largely driven by a significant price difference, with cocoa in Côte d’Ivoire selling at a much lower rate than Ghana’s official farmgate price. This gap has created an incentive for some individuals to exploit the system for personal gain.

Semahar alleged that certain officers and purchasing clerks are taking advantage of the situation to make illicit profits by diverting funds meant for local cocoa purchases.

The Licensed Cocoa Buyers Association of Ghana, however, distanced its members from the claims, insisting that no company would officially approve such actions. General Secretary Vitus Dzah attributed the issue to the misconduct of individual clerks acting independently for personal benefit.

He added that some of these individuals reportedly channel funds through middlemen who cross into Côte d’Ivoire to procure cocoa on their behalf.

The situation has heightened concerns about the ongoing financial challenges in Ghana’s cocoa sector, which has left many farmers unpaid for beans supplied since late 2025.

Semahar warned that beyond depriving local farmers of income, the practice effectively supports cocoa producers in Côte d’Ivoire and risks diluting the premium quality associated with Ghanaian cocoa if foreign beans are mixed with local produce.

He disclosed that COCOBOD’s anti-smuggling unit recently arrested four suspects and seized more than 100 bags of smuggled cocoa in Nkrankwanta, describing the operation as the beginning of a wider crackdown.

The Board says investigations are ongoing and assured that appropriate sanctions will be applied if institutional involvement by LBCs is established.