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 owed since November last year.
The disbursement forms part of efforts by COCOBOD to clear outstanding arrears within the cocoa sector and restore confidence among farmers and stakeholders across the value chain.
The move also follows a series of reforms announced last month by the Finance Minister, Cassiel Ato Forson, aimed at restructuring the cocoa sector and addressing debts owed to farmers and other industry players.
Speaking in an interview, the Head of Public Affairs at COCOBOD, Jerome Sam, said the Board is committed to ensuring that all outstanding payments due to cocoa farmers are settled before the end of the 2025/2026 cocoa season, expected around August.
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 affected farmers.
He explained that while some farmers are still awaiting payment, others have already been paid due to financing arrangements between COCOBOD and the Licensed Buying Companies.
“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.
He added that this arrangement explains why some farmers have already received payment while others still have outstanding arrears.
“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 explained.
Jerome Sam further noted that the Board is focused on improving liquidity within the cocoa purchasing system to ensure prompt payments to farmers and sustain cocoa production across the country’s cocoa-growing regions.
“We hope to complete all payments before the close of the season, which is expected to end around August or September,” he stated.
