COCOBOD Releases GH¢4.2 Billion to Settle Outstanding Payments Owed to Cocoa Farmers

The Ghana Cocoa Board (COCOBOD) has released about GH¢4.2 billion to Licensed Buying Companies (LBCs) to facilitate payments to cocoa farmers who have been awaiting compensation since November last year.

The disbursement is part of ongoing efforts to settle arrears within the cocoa industry and rebuild confidence among farmers and other stakeholders in the sector.

The initiative also follows a series of reforms announced recently by the Finance Minister, Cassiel Ato Forson, aimed at restructuring the cocoa industry and addressing outstanding debts owed across the cocoa value chain.

In an interview with Citi Business News, COCOBOD’s Head of Public Affairs, Jerome Sam, confirmed that the funds had already been transferred to Licensed Buying Companies as of last week to enable them to pay farmers.

He noted that while some cocoa farmers are still awaiting payment, others have already been paid due to pre-financing arrangements between COCOBOD and the buying companies.

According to him, during the 2023 cocoa season, difficulties with the syndicated loan facility forced some Licensed Buying Companies to pre-finance cocoa purchases. COCOBOD later reimburses these companies for the purchases they made.

“As a result, some farmers are not owed by the Licensed Buying Companies because the companies had already paid them, while others still have outstanding payments,” he explained.

Mr. Sam added that COCOBOD is working to ensure all outstanding debts owed to Licensed Buying Companies are cleared so they can fully settle payments due to farmers.

He further indicated that the Board is focused on improving liquidity in the cocoa purchasing system to ensure farmers receive prompt payment for their produce and to maintain steady production across Ghana’s cocoa-growing regions.

“We are hopeful that all outstanding payments will be cleared before the end of the 2025/2026 cocoa season, which is expected to conclude around August or September,” he said.