COCOBOD disburses US$364M to pay cocoa farmers as sector reforms take shape
COCOBOD releases GH¢4.2 billion to Licensed Buying Companies to settle cocoa farmer arrears as Ghana implements reforms aimed at restoring liquidity and confidence in the cocoa sector.
GHANA – Ghana Cocoa Board (COCOBOD) has disbursed approximately GH¢4.2 billion (US$364 million) to Licensed Buying Companies (LBCs) to facilitate payments to cocoa farmers who have been owed since November last year.
The payments form part of ongoing efforts to clear outstanding arrears within Ghana’s cocoa sector and restore confidence among farmers and other stakeholders in the industry.
According to COCOBOD, the funds have been released to Licensed Buying Companies for onward payment to farmers who supplied cocoa beans but had not yet received compensation due to liquidity challenges within the sector.
The move follows reforms announced last month by Cassiel Ato Forson, Ghana’s Finance Minister, aimed at restructuring the cocoa industry and addressing debts owed to farmers and other participants across the value chain.
Head of Public Affairs at Ghana Cocoa Board, Jerome Sam, said the institution is working to ensure that all outstanding payments owed to cocoa farmers are cleared before the end of the 2025/2026 cocoa season.
He explained that the GH¢4.2 billion had already been transferred to the Licensed Buying Companies as of last week to enable them to begin paying farmers. The overall outstanding debt within the sector is estimated at approximately US$1.3 billion.
“Some of the payments are recent, while others are older. Since 2023, when we experienced challenges with the syndicated loan, Licensed Buying Companies sometimes stepped in to pre-finance cocoa purchases,” Sam said.
According to him, some farmers have already received payments because certain Licensed Buying Companies used their own resources to finance cocoa purchases when COCOBOD encountered difficulties securing its syndicated loan.
Sam noted that COCOBOD subsequently reimburses these companies for the cocoa purchases made during that period.
Payments for November, December and January together amount to more than GH¢17 billion (US$1.47 billion), while an additional GH¢620 million (US$54 million) was disbursed in February based on prevailing exchange rates.
Sam said the board is continuing efforts to ensure that all funds owed to Licensed Buying Companies are settled so that farmers can receive their payments in full.
“We are working to ensure that all payments owed to cocoa farmers are cleared before the end of the 2025/2026 cocoa season,” he said.
He added that COCOBOD remains focused on improving liquidity within the cocoa purchasing system to ensure prompt payments and sustain cocoa production across the country.
Earlier this year, Ghana introduced a new domestic financing model and set a farmgate cocoa price of 41,392 cedis (US$3,580) per metric ton for the remainder of the 2025/2026 crop season.
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