By Adnan Adams Mohammed
In a massive move to restore the “golden” glow to Ghana’s cocoa sector, the Ghana Cocoa Board (COCOBOD) has released a staggering GH¢4.2 billion to settle outstanding debts owed to the nation’s hardworking cocoa farmers.
The injection of funds, which began flowing to Licensed Buying Companies (LBCs) this week, is designed to end a grueling wait for thousands of farmers who have been without payment since November of last year.
For many farmers, the delay has been a period of tightening belts. The new capital aims to not only clear the books but to reinvigorate a sector that remains the backbone of the Ghanaian economy. This massive payout follows a strategic roadmap laid out by Finance Minister Dr. Cassiel Ato Forson, focused on restructuring COCOBOD’s debt and ensuring the sustainability of the industry.
Jerome Sam, Head of Public Affairs at COCOBOD, noted that his outfit is on a “tireless” mission to ensure the liquidity gap is closed.
”As COCOBOD, we are working to ensure that every cedi owed to the Licensed Buying Companies is paid so they can, in turn, settle any outstanding debts with their farmers,” Sam stated.
Navigating the Backlog
The payment structure is a complex puzzle. Since the 2023 syndicated loan challenges, many LBCs used their own capital to pre-finance purchases, leaving a fragmented trail of who is owed and by how much.
While some farmers were paid promptly by well-capitalized LBCs, others particularly those tied to companies waiting for COCOBOD reimbursements have seen their receipts gather dust.
Key Objectives of the ¢4.2bn Injection:
Restoring Confidence: Rebuilding trust between the government, LBCs, and rural communities.
Increasing Liquidity: Ensuring cash is physically available at buying centers.
Sustaining Production: Providing farmers with the funds needed for fertilizers and labor ahead of the next cycle.
The Road to August
The goal is clear: zero arrears by the end of the 2025/2026 season. With the current season expected to wrap up around August or September, COCOBOD is racing against the clock to ensure that the “sweat of the farmer” is fully compensated before the new crop year begins.
For the cocoa growers in Sefwi, Enchi, and Tepa, the news is a welcome harvest of hope. As the funds filter down from the LBCs to the local sheds, the industry watches closely to see if this injection will finally stabilize the fluctuating fortunes of Ghana’s most iconic export.
