The Ghana Cocoa Board (COCOBOD) has failed to meet its self-imposed deadline of clearing more than GH¢6 billion in outstanding payments owed to cocoa farmers and Licensed Buying Companies (LBCs), leaving an estimated GH¢3.4 billion still unpaid despite recent disbursements.
The development comes weeks after COCOBOD’s Head of Public Affairs, Jerome Sam, publicly assured stakeholders that nearly all outstanding arrears would be settled before the end of June.
Speaking during an interview on JoyNews’ PM Express on June 15, Mr. Sam stated that by the end of the month, any outstanding balance owed to farmers and LBCs would be “insignificant.”
“Before the end of this month, if all farmers or all LBCs who are owed are not paid, I’m sure it will be left with an insignificant amount to be owed,” he said during the interview.
GH¢2.6 Billion Released
Although COCOBOD announced on July 2 that it had released GH¢2.6 billion to Licensed Buying Companies to facilitate payments, the amount was insufficient to meet its earlier commitment.
According to the Board:
- GH¢1.4 billion has been allocated to settle outstanding payments owed to cocoa farmers who supplied beans on credit.
- GH¢1.2 billion has been earmarked to reimburse Licensed Buying Companies that pre-financed cocoa purchases from farmers.
Prior to the latest disbursement, COCOBOD had acknowledged arrears exceeding GH¢6 billion. Based on the Board’s own figures, the GH¢2.6 billion payment covers only about 43 percent of the debt, leaving approximately GH¢3.4 billion, or 57 percent, still outstanding.
Impact on Farmers and Licensed Buying Companies
The outstanding payments continue to place significant financial pressure on Licensed Buying Companies, many of which borrowed funds to purchase cocoa from farmers while awaiting reimbursement from COCOBOD.
Industry analysts warn that prolonged delays could affect the liquidity of LBCs ahead of the next cocoa purchasing season, making it more difficult for them to finance future cocoa purchases.
For cocoa farmers, delayed payments have also affected household incomes and limited their ability to purchase farm inputs, maintain plantations, and prepare for the upcoming crop season.
COCOBOD Defends Progress
Despite missing its June target, COCOBOD maintains that substantial progress has been made in reducing the arrears.
The Board noted that since the start of the 2025/26 crop season, it has disbursed more than GH¢34.5 billion to Licensed Buying Companies for onward payment to cocoa farmers.
Management also said it has introduced monitoring mechanisms to ensure that the latest funds reach farmers promptly and urged any farmer with unpaid balances to contact their respective Licensed Buying Companies.
In its statement, COCOBOD thanked cocoa farmers for their patience during what it described as a challenging financial period and reaffirmed its commitment to clearing the remaining debt.
Calls for Greater Transparency
The missed deadline has renewed concerns about COCOBOD’s financial position and the sustainability of Ghana’s cocoa sector.
Observers say the Board’s inability to fulfill its publicly announced timeline could affect confidence among farmers and Licensed Buying Companies, who rely on timely payments to sustain production and maintain operations.
Stakeholders are now calling for greater transparency regarding when the remaining GH¢3.4 billion will be paid and how COCOBOD intends to prevent similar delays in future crop seasons.
