Ghana Cocoa Board (COCOBOD) has disbursed approximately GH¢4.2 billion to Licensed Buying Companies (LBCs) for onward payment to cocoa farmers who have been owed since November last year.
The payments form part of efforts to clear outstanding arrears within the cocoa sector and restore confidence among farmers and industry players.
The move also follows a series of reforms announced last month by the Finance Minister, Dr. Cassiel Ato Forson, aimed at restructuring the cocoa sector and addressing debts owed to farmers and other stakeholders within the value chain.
In an interview with Citi Business News, the Head of Public Affairs at COCOBOD, Jerome Sam, said the institution remains committed to ensuring that all outstanding payments due cocoa farmers are settled before the end of the 2025/2026 cocoa season, expected around August.
According to him, the aforementioned mentioned amount had already been released to Licensed Buying Companies as of last week to facilitate payments to farmers.
He explained that while some farmers are still owed, others have already received payment due to existing 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.
“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,” he explained.
Jerome Sam added that COCOBOD remains focused on improving liquidity within the cocoa purchasing system to ensure prompt payments to farmers and sustain production across the country’s cocoa-growing areas.
“We hope to complete all payments before the close of the season, which is expected to end around August or September,” he stated.
-citinewsroom
