The Chief Executive Officer (CEO) of Ghana Cocoa Board (COCOBOD), Dr Randy Abbey, has described the recently passed COCOBOD Bill, 2026 as the most significant reform to the cocoa sector since 1984.
He stated that the new bill was key to ending decades of financial and pricing challenges the cocoa sector had faced over the years.
At the launch of the Chamber of Cocoa Marketers in Accra last Thursday, Dr Abbey said the new bill and the accompanying funding model were designed to guarantee 70 per cent of gross Free on Board (FOB) to farmers, ensure liquidity for crop purchase, and promote domestic value addition.
“For 32 years, the syndicated loan served us well, but after it collapsed, we obviously need to take the steps necessary to look at a new funding model,” he said.
He questioned the old collateralised funding system, which, he said, locked up almost the entire crop for international buyers.
“If you have a funding model which obliges you to collateralise almost all your crop, how are you able to provide the raw material for value addition domestically?” Dr Abbey asked.
To address this, he said COCOBOD was introducing a new financing mechanism, which would raise the biggest domestic bond in a single issuance in the history of the country.
The goal, he said, was to provide liquidity all year round and eliminate delays in payment of cocoa taking-over receipts that had affected Licensed Buying Companies (LCBCs) since 2020.
Dr Abbey also defended the new pricing mechanism in the bill. He blamed the decision not to adjust cocoa prices in 2017 for the current GH¢2.6 billion annual debt burden, which he said was later rolled into the Domestic Debt Exchange Programme (DDEP).
“When prices improve, all stakeholders, including the farmer, benefit. When the prices go down, we all take that blow.
We have promised the farmer 70 per cent of the gross FOB; we’re delivering on that.
The prices will be adjusted when they must be adjusted,” he said.
For the first time, the bill also legislates COCOBOD’s mandate to pursue domestic value addition.
Disinformation
Dr Abbey further addressed what he called a “misinformation and disinformation drive” around the bill, particularly on farm protection.
Citing Clause 80 and 81, he said the law protected all cocoa farms from destruction and destructive activities within 500 metres, but did not ban good agronomic practices.
He added that the bill imposed stringent financial management rules on COCOBOD, including compliance with the Public Financial Management Act and ministerial oversight, to prevent future under-recoveries.
Dr Abbey called on the new Chamber of Cocoa Marketers to be a partner in policy advocacy, digitisation, and enforcement of standards as the global market demands more on sustainability and traceability.
“The success of the reforms requires the cooperation and participation of all stakeholders,” he said.
The Interim President of the Chamber of Cocoa Marketers, Samuel Adimado, said the LBCs had formally transitioned into the Chamber of Cocoa Marketers to position themselves as a policy-influential body amid sweeping reforms in the cocoa sector.
Mr Adimado said the move was necessary following the enactment of a new cocoa bill which had changed the dynamics of the entire cocoa value chain.
He recalled that since the liberalisation of internal cocoa marketing in the early 1990s, LBCs saw the need for a common platform.
Though early engagements with the regulator were informal, he said it laid the foundation for the association, which was incorporated in 2010.
He cited the 2003-2004 “Temple Bean” incident as the high point that nearly collapsed LBCs’ businesses and pushed the need for formal unity.
He added that transitioning into a “standard-driven and policy-influential institution” was a strategic response, rather than remaining a reactive advocacy group.
