The Ghana Cocoa Board (COCOBOD) has announced plans to overhaul its cocoa financing structure amid mounting pressure from cocoa farmers over unpaid arrears and growing liquidity challenges in the sector.
Speaking at a press briefing in Accra on Friday, the Chief Executive Officer of COCOBOD, Randy Abbey, disclosed that the Board was working closely with the Ministry of Finance to resolve outstanding payments owed to cocoa farmers, acknowledging widespread concerns over delays.
According to Mr Abbey, the payment challenges stem largely from delays in accessing syndicated funding, a situation that has forced COCOBOD to depend heavily on international buyers to finance cocoa purchases.
“Our current financing structure has constrained us,” he said, explaining that COCOBOD pays farmers over US$5,000 per tonne while cocoa trades at just above US$4,000 per ton on the international market.
He noted that this pricing gap has made Ghana’s cocoa less attractive to some Licensed Buying Companies (LBCs), several of which have shifted sourcing to other cocoa-producing countries with lower producer prices.
Against this backdrop, Mr Abbey revealed that COCOBOD is exploring a new funding model aimed at reducing dependence on raw cocoa exports and prioritising value addition.
“We are looking at a model that does not tie our hands with respect to the collateralisation of the raw bean,” he said. “Any financing structure that limits the Board’s ability to prioritise value addition will not be considered.”
Mr Abbey said COCOBOD would engage the leadership of cocoa farmers immediately after the briefing to discuss their grievances and chart a path toward resolving the payment impasse.
Responding to criticism over the Board’s procurement of vehicles amid payment delays, Mr Abbey dismissed claims of misplaced priorities, stating that the vehicles were acquired through Internally Generated Funds to improve operational efficiency in cocoa-growing areas.
“When I assumed office, there was no official vehicle for me. I had to use my personal vehicle,” he said, stressing that staff require adequate logistics to function effectively.
On infrastructure, Mr Abbey indicated that COCOBOD had undertaken a rationalisation exercise under the Domestic Debt Exchange Programme, reducing its cocoa road debt from GH¢26 billion to GH¢4.5 billion.
He reaffirmed management’s commitment to stabilising the cocoa sector and ensuring farmers are paid promptly, warning that unresolved funding challenges could undermine operations across the value chain.
The developments come amid rising tensions, with cocoa farmers threatening nationwide demonstrations if arrears remain unpaid. The Minority Caucus in Parliament has also urged government to immediately settle more than GH¢10 billion owed to cocoa farmers and LBCs.