COCOBOD releases GH¢4.2B to clear farmer arrears

The Ghana Cocoa Board (COCOBOD) has taken a major step to stabilize the cocoa sector with the release of approximately GH¢4.2 billion to Licensed Buying Companies (LBCs). The funds are intended to facilitate the payment of outstanding arrears owed to cocoa farmers, some of whom have been awaiting settlement since November of last year.

The injection of capital forms part of a broader governmental initiative to restructure the sector and restore confidence among farmers and stakeholders. This follows a series of policy reforms announced by the Finance Minister, Dr. Cassiel Ato Forson, aimed at addressing legacy debts and ensuring the long-term viability of cocoa production.

Jerome Sam, Head of Public Affairs at COCOBOD, confirmed the development, stating that the institution is working diligently to settle all outstanding payments before the conclusion of the 2025/2026 crop season, which is expected to end around August or September.

Mr. Sam clarified that the payment structure involves reimbursing LBCs, who have often shouldered the financial burden of purchasing cocoa beans from farmers.

“Some 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,” Mr. Sam explained.

He added, “That is why some farmers are not owed by the LBCs, while others still have outstanding payments. 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.”

The move is expected to enhance liquidity within the cocoa purchasing value chain. By clearing these arrears, COCOBOD aims to enable prompt payments to farmers in real-time, thereby sustaining production and motivation 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,” Mr. Sam reiterated.