Government has directed Ghana Cocoa Board (COCOBOD) to commence immediate repayment to all cocoa farmers owed money for deliveries made during previous seasons, Finance Minister Dr Cassiel Ato Forson announced on Thursday.
Speaking at a press briefing following an emergency Cabinet meeting on Wednesday, Dr Forson revealed that the payment directive forms part of comprehensive reforms to guarantee fair prices to cocoa farmers and ensure long-term sustainability of the industry.
Thousands of farmers across several producing regions have reported outstanding payments for cocoa supplied since late 2025, with delays affecting livelihoods, access to healthcare and ability to pay school fees.
The Finance Minister disclosed that COCOBOD could not pay the final tranche of a syndicated loan due in July 2024 and received 70 million United States dollars in bridge finance from the Ministry of Finance to avert a default.
Despite a commitment to repay the bridge finance, COCOBOD defaulted, highlighting the severe financial condition of the organization at the time, Dr Forson explained.
The current administration and management of COCOBOD have since inherited this debt as part of broader financial challenges facing the sector.
Cabinet approved the conversion of approximately 5.8 billion Ghana cedis in legacy debt owed to the Ministry of Finance and Bank of Ghana (BoG) to restore positive equity and strengthen COCOBOD’s balance sheet.
The debt includes 3.7 billion cedis arising from the conversion of non-marketable cocoa bills into loans and 1.38 billion cedis owed to the BoG under a ten-year facility.
Road construction liabilities worth 4.35 billion cedis will be transferred from COCOBOD to the Ministry of Roads and Highways and the Ministry of Finance, relieving the board of non-core financial burdens.
A review of cocoa road contracts awarded over the past decade showed that between 2014 and 2024, COCOBOD awarded contracts valued at 26.5 billion cedis, with 21.5 billion cedis committed between 2018 and 2021.
The Attorney General has been directed to commission a forensic audit and criminal investigation into COCOBOD’s activities over the past eight years.
Dr Forson announced a new producer price of 41,392 cedis per tonne for the remainder of the 2025/2026 crop season, reflecting payment of 90 percent of the achieved gross Free on Board (FOB) price of 4,200 United States dollars per tonne.
A new COCOBOD Bill will be presented to Parliament to introduce automatic adjustment of producer prices based on world market trends and exchange rates, guaranteeing farmers a minimum of 70 percent of the gross FOB price.
From the 2026/2027 crop season, Cabinet mandated that at least 50 percent of cocoa beans must be processed locally, with the remainder of the current season’s beans allocated to domestic processors.
The reforms will replace the failed syndicated loan model with domestic cocoa bonds from the 2026/2027 season to ensure liquidity throughout the crop year.
