The Managing Director of Produce Buying Company (PBC) Limited, Alhaji Seidu Yonye, has vowed to lead the once-vibrant cocoa trading company out of its financial turmoil without selling off its assets, despite intense pressure from creditors and a lack of a government bailout.
In a determined and optimistic tone, Alhaji Yonye outlined a robust turnaround plan aimed at restoring the company’s financial health, rebuilding its market presence, and regaining investor confidence by leveraging strategic partnerships and internal restructuring.
Once Ghana’s leading Licensed Buying Company (LBC) and a major agent of the Ghana Cocoa Board (COCOBOD), PBC has, in recent years, been battling a serious financial crisis.
The situation nearly led to the forced sale of the company’s assets in 2023, following a court order in favour of six local banks. While the looming threat of asset seizure did not materialise, the debt remains, and pressure continues to mount.
The Managing Director, who was recently appointed by President Mahama, confirmed that the company is now in active discussions with the Social Security and National Insurance Trust (SSNIT), the second-largest shareholder after the Ministry of Finance, to take on some of PBC’s heavy liabilities with the banks.
“We are in talks with SSNIT, and what we are trying to come out with is to see the possibility of SSNIT offloading that burden of liability on us from the banks, so that at least it can give our books a good look.”
Alhaji Seidu Yonye, Managing Director PBC
According to him, the Finance Ministry, which holds the majority stake in PBC, has declined to offer a direct bailout, instead charging the company to “work it out” independently.
“If we need to sell assets, let’s sell, but I don’t believe in selling,” Alhaji Yonye stressed, adding, “Selling is a no-go area. I don’t believe in it because I have to add up.”
PBC’s Commitments
To secure the necessary financing from SSNIT, PBC is proposing to mortgage its lucrative subsidiary, Golden Bean Hotel in Kumasi, as collateral.
According to the MD, this would not be a handout but a conditional transaction, where PBC will repay the support in full.
“SSNIT is also holding a trust—the workers’ pension scheme. They cannot just release money. So I am making an arrangement with them: if they bail us out, it will be on condition that we repay, and we are pledging the hotel to secure that deal.”
Alhaji Seidu Yonye, Managing Director PBC
The bailout, if successful, would help clean up PBC’s financial books, improving its standing with banks and off-takers—commercial cocoa processors who advance funds for the purchase of beans in exchange for commission arrangements.
With government support through Cocobod dwindling, off-takers have become the company’s best bet for sourcing funds for operations.
Alhaji Yonye is confident that, given the right conditions, PBC can achieve a significant turnaround. He projected a potential annual profit of up to GHS 70 million if the company can secure good off-takers and return to pre-crisis purchasing volumes.
“If in a season, we are able to do 50 metric tons—which is not very difficult—we can make close to GHS 70 million after expenditures and interest payments. PBC has what it takes to do this against all odds.”
Alhaji Seidu Yonye, Managing Director PBC
He underscored the company’s past credibility and extensive infrastructure as key selling points, stating that before its decline, PBC had nearly 593,000 cocoa farmers in its network and over 11,400 Cocoa Marketing Clerks (CMCs) operating across the country’s cocoa-growing regions.
This extensive market reach, he noted, gave PBC a commanding market share of over 30 per cent. According to Alhaji Yonye, many of these stakeholders remain loyal and can be quickly mobilised to reinvigorate the company’s operations.
“Trust me, even PBC is not going to the market, but there are still activities that go in the market in the name of PBC. Some LBCs are riding behind the goodwill of PBC.”
Alhaji Seidu Yonye, Managing Director PBC
July as Completion Date
The MD is targeting July as the completion point for discussions with SSNIT and a resolution of the company’s issues with the banks, asserting that this would position PBC to take advantage of the upcoming cocoa pre-season opening in August.
“In August this year, we are expecting some action,” he stated. “We would be in the market while solving the other problems.” Alhaji Yonye also pointed out that the organisation had been floated on the stock market in the past; however, he indicated that such a move would depend on stabilising the company’s financial base and restoring investor confidence.
Alhaji Yonye’s leadership strategy reflects a shift from crisis management to growth revival, relying on PBC’s institutional knowledge, infrastructure, and industry partnerships.
He remains optimistic that, with the right partnerships, particularly with SSNIT and credible off-takers, the company can be pulled back from the brink and return to profitability.
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