The Ghana Cocoa Board (COCOBOD) is set to meet the Chamber of Cocoa Marketers Ghana (CCMG) next week to address mounting concerns over nearly GH¢4 billion owed to Licensed Buying Companies (LBCs).
The meeting, which is expected to bring the leadership of COCOBOD and the Chamber face-to-face, comes at a critical time as the industry prepares to open the 2026/27 cocoa season.
The Chamber warns that the outstanding payments, which relate to cocoa purchases from the just ended season, are crippling the ability of its members to secure fresh financing to return to the field.
COCOBOD, however, says the engagement will provide an opportunity to iron out all outstanding issues before the new season officially begins. Speaking to the Media, the Head of Public Affairs at COCOBOD, Jerome Sam, confirms that the Chamber has formally reached out to the Chief Executive Officer of COCOBOD, Dr. Randy Abbey, to request a meeting.
“Because of his busy schedule, which is known to them, he hasn’t fixed the meeting, but he was looking at next week where we will iron out all these issues even before the opening of this season.”
Head of Public Affairs, Jerome Sam
He adds that the proposed meeting is the appropriate forum for COCOBOD to provide the necessary responses and assurances to the marketers. “That will be the appropriate forum for these discussions to be made. That is where proper responses and assurances will come,” he says.
The Attention on 2025/26 LBCs Debt
The GH¢4 billion in question, according to the Chamber, represents money owed to LBCs for cocoa they bought from farmers during the 2025/26 season, often with borrowed funds from commercial banks.
Chief Executive Officer of the Chamber of Cocoa Marketers Ghana, Victus Dzah, says the debt is placing enormous strain on the operations of LBCs. He explains that buying companies rely heavily on bank facilities to finance cocoa purchases.
When COCOBOD delays reimbursement, the companies are unable to repay their bankers, and banks in turn refuse to open new lines of credit.
“If they are able to pay us, at least we can use those monies to start with, and then we can pay our bankers, and then our bankers can also open new lines of credit for us to go to the field and buy cocoa from the farmers.”
CCM CEO, Victus Dzah
He warns that without payment, many LBCs simply cannot go back to the farms.
“But if they don’t pay us, how are we going to pay our bankers? We are not financial institutions; we can’t go to the field. If we are not paid and another season is open, we cannot even go to the market. Because banks have closed all the facility channels. The Chamber stresses that the nearly GH¢4 billion is not a legacy debt accumulated over several years, but debt from the season that has just ended.’’
CCM CEO, Victus Dzah
Some members, Dzah reveals, are borrowing at interest rates of up to 40 per cent while waiting for COCOBOD to settle its obligations.
He explains that Cocoa buyer buy the cocoa, and in seven months, they cannot pay. They become totally out of the business. He notes that some companies have collapsed because of this.
Financial Pressure During a Major Reforms
The financial pressure is happening at a time when COCOBOD itself is undergoing major reforms. Government has disclosed that COCOBOD carried total debt of GH¢32.9 billion as of the end of 2024, with negative equity of about GH¢3.8 billion.
As part of a rationalization exercise, Cabinet has directed that GH¢4.35 billion in cocoa roads liabilities be transferred to the Ministry of Roads and Highways, while GH¢5.8 billion owed to the Ministry of Finance and Bank of Ghana is being converted to equity to restore the Board’s balance sheet.
In addition, the traditional syndicated loan model, which exposed COCOBOD to foreign exchange risks, is being replaced with a new Cocoa Bond model. Under the new system, COCOBOD borrows domestically in cedis to fund a revolving cycle: raise money, buy cocoa, sell cocoa, repay bonds, and repeat.
The Board has also had to navigate global price volatility. After world market prices dropped from an average of $7,200 per tonne to $4,100 per tonne, COCOBOD faced liquidity challenges.
Forward sales contracts signed at historically low prices, at roughly GH¢41,600 per tonne for about 333,767 tonnes, worsened the situation when global prices later surged.
Despite these challenges, COCOBOD maintains that settlement of LBC payments is a priority. The Head of Public Affairs recalls that in July, the Board released GH¢2.6 billion to LBCs for farmer payments, with GH¢1.4 billion earmarked for arrears, and earlier this year, GH¢162 million in Cocoa Bills to holders who opted out of the Domestic Debt Exchange Programme.
Time is Critical at this Point
The new season is imminent, and without fresh financing, many LBCs risk being side lined. Dzah says they want to know what Cocoa Board will pay because the timing is critical at this point.
Beyond the debt, the Chamber also raises a second concern about Ghana’s new pricing mechanism, which guarantees farmers 70 per cent of the Free On Board (FOB) price, as enshrined in the Ghana Cocoa Board Act, 2026.
Dzah cautions that if Ghana’s price significantly exceeds that of Côte d’Ivoire, which has opened its 2026/27 season at 1,200 CFA francs per kilogramme, the price differential could fuel cross-border smuggling.
He went on to say that if Ghana should hike its price by this percentage, then there will be huge implications in terms of price differential between Ghana and Côte d’Ivoire. Recalling that Ghana lost substantial volumes in the 2023/24 season when Ivorian prices were more attractive.
He calls for measures to curb anticipated smuggling and to protect the quality of Ghanaian cocoa, which remains premium on the international market. As stakeholders await next week’s meeting, the industry is watching closely.
The ability of LBCs to secure financing, pay farmers promptly, and ensure smooth evacuation of beans will determine how successfully the 2026/27 season takes off.
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