Ghana Cocoa Board (COCOBOD) has commenced payments to Licensed Buying Companies (LBCs) to enable them to settle outstanding amounts owed to cocoa farmers across the country.
The move follows weeks of growing concern over delayed payments to farmers, with warnings that prolonged arrears could deepen hardship in cocoa-growing communities and threaten the sustainability of the sector.
According to Jerome Kwaku Sam, Head of Corporate Communications at COCOBOD, the payment delays stemmed largely from challenges in accessing syndicated funding, which compelled the Board to rely on alternative funding arrangements with international cocoa buyers.
These arrangements required LBCs to pre-finance cocoa purchases, with COCOBOD reimbursing them later.
In recent months, COCOBOD has made substantial payments to ease the situation, including GH¢6 billion in November, GH¢5 billion in December, and GH¢6 billion in January, with an additional GH¢620 million paid this month alone.
The Minority in Parliament has expressed concerns over the delays, warning that they are causing severe hardship for farmers and threatening the entire cocoa value chain.
Hon. Isaac Yaw Opoku, Ranking Member on Parliament’s Food, Agriculture, and Cocoa Affairs Committee, emphasized that cocoa farmers are not beggars and should be paid promptly.
COCOBOD is working towards introducing a new and more sustainable financing model for the cocoa sector to prevent a recurrence of such challenges.
The Board remains committed to ensuring that farmers receive their payments promptly and that the cocoa sector operates efficiently for all stakeholders.
