Ghana cocoa buyers warn COCOBOD arrears could disrupt 2026/27 season
Licensed cocoa buyers say delayed payments are restricting access to working capital as Ghana prepares for a new season amid expectations of lower production.
GHANA – Ghana’s licensed cocoa-buying companies could struggle to finance purchases when the 2026/27 cocoa season begins unless the Ghana Cocoa Board (Cocobod) clears outstanding payments estimated by an industry group at nearly GHS4 billion (US$348 million).
The Chamber of Cocoa Marketers Ghana said the unpaid obligations are making it harder for Licensed Buying Companies (LBCs) to secure fresh credit while servicing loans from previous purchases.
Victus Dzah, chief executive officer of the chamber, said some buyers are borrowing at interest rates of up to 40%, increasing pressure on their ability to finance the next buying cycle.
“Cocobod has not paid us. How are we going to go back to the field to buy cocoa?” Dzah said. “You buy the cocoa, and in seven months, you cannot pay. You are totally out of the business. Some companies have collapsed because of this.”
Cocobod has acknowledged that payments remain outstanding but said such balances are not unusual at the end of a cocoa season and do not indicate an inability to meet its obligations. The board has not independently confirmed the chamber’s GHS4 billion estimate.
The financing concerns follow changes to Ghana’s cocoa purchasing system. For decades, Cocobod relied on annual offshore syndicated loans to provide working capital for cocoa purchases before export proceeds were received.
That arrangement was discontinued in 2024 before an equivalent domestic facility was fully established. Financing has since become more fragmented, with LBCs relying increasingly on buyer pre-financing, commercial bank credit and other short-term funding arrangements.
Cocobod now plans to use Ghana’s domestic capital market to support its 2026/27 financing model. The plan includes 270-day cedi-denominated commercial paper under a five-year programme, with the board expecting local investors to provide about GHS16 billion annually. Cocobod also faces annual debt-service payments of about GHS2.6 billion.
Institutional investors were reported on September 16 to be seeking higher coupon rates and greater risk premiums before committing funds, adding to financing challenges ahead of the delayed start to the new season.
Production Outlook and Price Risks
The financing concerns come as Cocobod expects Ghana’s cocoa production to fall by at least 16% in the 2026/27 season. The sector previously experienced a major liquidity squeeze during 2023/24, when production fell to 429,323 tonnes by the end of June.
A June study on Ghana’s post-syndication cocoa financing system found that domestic banking capacity may be insufficient to meet cocoa sourcing requirements, with smaller locally owned LBCs particularly exposed.
Dzah also warned that changes to Ghana’s farmgate price could affect cocoa flows between Ghana and neighbouring Côte d’Ivoire.
“If Ghana should hike its price by this percentage, then already you must know there will be huge implications in terms of price differential between Ghana and Côte d’Ivoire,” he said.
Cocobod said it has prioritised payments to farmers and plans to meet cocoa-buying companies to reconcile outstanding amounts before the new season begins.
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