The Ghana Cocoa Board (COCOBOD) has commenced payments to Licensed Buying Companies (LBCs) to enable them to settle outstanding arrears owed cocoa farmers for beans already delivered.
The move follows growing public concern over prolonged payment delays that left many cocoa farmers unpaid for several months, raising fears about the sustainability of the cocoa sector.
The issue drew national attention on Thursday, February 5, when the Minority in Parliament warned that the delays were imposing severe hardship on farmers and threatening the entire cocoa value chain.
COCOBOD had been accused of owing LBCs more than GH¢10 billion for cocoa already taken over, a situation that severely constrained the companies’ cash flow and affected their ability to pay farmers promptly. However, the Board says it has made significant disbursements in recent months to ease the situation.
Speaking in an interview on Citi FM, COCOBOD’s Head of Corporate Communications, Jerome Kwaku Sam, said the Board has released billions of cedis to LBCs since late 2025.
“In November, we paid over GH¢6 billion, in December more than GH¢5 billion, and in January another GH¢6 billion. This month alone, we have paid over GH¢620 million, and we are continuing to pay the LBCs so they can clear outstanding payments to farmers,” he stated.
Mr. Sam explained that the payment delays were largely due to challenges in securing syndicated financing, which compelled COCOBOD to rely on alternative funding arrangements with international cocoa buyers. Under this system, LBCs pre-financed cocoa purchases, with reimbursement from COCOBOD coming later.
He added that the Board is working closely with the current administration to develop a more sustainable financing model for the cocoa sector to prevent future delays.
According to Mr. Sam, COCOBOD remains committed to ensuring timely payments to farmers and safeguarding the long-term stability of Ghana’s cocoa industry, which remains a critical pillar of the national economy.
