News Guide Africa

Tag: Licensed Cocoa Buyers Association of Ghana (LICOBAG)

  • COCOBOD kicks off nationwide engagements on landmark Cocoa Board Bill 2026

    COCOBOD kicks off nationwide engagements on landmark Cocoa Board Bill 2026

    The Ghana Cocoa Board (COCOBOD) has launched a nationwide stakeholder engagement series to unpack the newly passed Ghana Cocoa Board Bill, 2026, opening the dialogue with key industry actors at Cocoa House in Accra on Tuesday.

    The maiden session brought together leaders from cocoa farmer-based organisations, civil society groups, and the Licensed Cocoa Buyers Association of Ghana (LICOBAG). Led by COCOBOD Chief Executive Dr. Randy Abbey and members of management, the meeting focused on the law’s expanded regulatory oversight, revised financing policies, and an updated producer pricing framework.

    Addressing delegates during the opening session, Dr. Randy Abbey emphasized that the legislation marks a structural shift aimed at securing the long-term viability of Ghana’s cocoa economy while placing farmers at the center of governance.

    “The Ghana Cocoa Board Bill, 2026 is not merely a legal document; it is a blueprint for the modernization and sustainability of our cocoa sector,” Dr. Abbey stated. “Our objective with this nationwide exercise is to ensure that every stakeholder from our buying companies to the farmer in the village—understands their rights, responsibilities, and the protection this new framework guarantees.”

    Key focus areas of the discussions included farm protection mechanisms, enhanced supply chain traceability, updated licensing requirements, and the operational rollout of the Cocoa Farmer Pension Scheme.

    Reacting to the presentation, representatives of LICOBAG welcomed the statutory updates regarding financing and licensing, noting that clarity on regulatory oversight will boost confidence among operational buyers.

    “Clear rules of engagement benefit the entire value chain,” said a spokesperson for LICOBAG. “The detailed discussions on financing policy and licensing give licensed buyers a clearer roadmap for operations while aligning our practices with global traceability standards.”

    Farmer-based organizations also expressed optimism regarding the bill’s provisions on price stabilization and pension security, while stressing the need for continuous education as the law takes effect.

    “Our main priority has always been fair pricing, farm protection, and a dignified retirement for our farmers,” noted a senior representative from the cocoa farmer associations present. “Seeing these protections embedded in the legal framework gives us confidence, but the real work lies in ensuring these policies translate directly into the livelihoods of local farm communities.”

    Following the initial dialogue in Accra, COCOBOD announced that the consultation series will cascade to regional, district, and local cocoa society levels across the country to build widespread understanding and ensure smooth implementation.

     

     

  • Cocoa merchants warn of industry collapse;  …demand urgent funding and policy overhaul

    Cocoa merchants warn of industry collapse;  …demand urgent funding and policy overhaul

    By Adnan Adams Mohammed

    The Licensed Cocoa Buyers Association of Ghana (LICOBAG) has issued a warning for the nation’s cocoa industry, asserting that a perfect storm of funding shortfalls, flawed sales strategies, and deep-seated policy inconsistencies is pushing the sector toward an irreversible decline.

    At a high-stakes press conference in Accra last week, LICOBAG Executive Secretary Victus Dzah painted a grim picture of a sector struggling under the weight of a “liquidity crunch.” He argued that without immediate intervention to restore professionalism and fix the broken financing model, Ghana once the gold standard for global cocoa risks losing its industry to illegal mining (galamsey) and systemic collapse.

    The most critical demand from the Association is a fundamental reset of how cocoa is financed. Following COCOBOD’s departure from its traditional international syndicated loan model in 2024, Licensed Buying Companies (LBCs) say they have been pushed into unsustainable debt.

    “We suggest a review of the current funding model to allow for a hybrid arrangement,” Mr. Dzah stated. This proposal calls for combining the reliability of the old syndicated facility with the new structure to ensure real-time payments. Currently, LBCs are being forced to pre-finance cocoa purchases at interest rates as high as 29.8%, only to wait months for reimbursement from COCOBOD.

    Emergency Measures for 300,000 Metric Tonnes

    The Association also sounded the alarm on a growing backlog of unpaid cocoa. LICOBAG is urging the government to secure an emergency facility to pay for an estimated 300,000 metric tonnes of cocoa produced and delivered.

    “Cocoa delivered to port since December 2025 remains unpaid,” Mr. Dzah revealed, adding that the delays have caused tensions to boil over at the grassroots level. Reports are emerging of farmers arresting purchasing clerks who are unable to pay for delivered beans.

    LICOBAG’s “Roadmap to Recovery”

    Beyond the financial metrics, the crisis is threatening the quality of Ghana’s “Premium A” beans. With buying stalled, many farmers have resorted to storing unsold cocoa in fertilizer bags—a practice that poses severe contamination risks and could lead to mass rejections at the international level.

    “Serious efforts must be made to revamp the cocoa industry beyond rhetoric and theatrics,” Mr. Dzah concluded, calling for a “paradigm shift” that insulates the Ghana Cocoa Board from political interference and restores security of tenure for its technocrats.

    As the 2025/2026 season reaches a critical juncture, all eyes are now on COCOBOD and the Ministry of Finance to see if they will heed the call for a “hybrid” financing return or double down on the current model that buyers say is failing.