PBC secures cocoa-backed financing facility to clear farmer payments
PBC has secured a financing facility backed by 30 million cocoa stocks to pay farmers, aiming to ease liquidity pressure and restore confidence in Ghana’s cocoa supply chain.
GHANA – The Produce Buying Company (PBC) Limited has secured a financing facility backed by 30 million credited cocoa stocks to enable timely payments to farmers, as Ghana’s cocoa sector continues to face liquidity challenges and delayed settlements.
The development comes as several Licensed Buying Companies (LBCs) struggle with cash flow constraints, increasing pressure across the cocoa value chain and raising concerns among farmers over payment delays.
At the signing of a Memorandum of Understanding between PBC and the Ghana National Cocoa Farmers Association (GNACOFA), Deputy Managing Director for Finance, Thomas Ayisi, said the arrangement is aimed at restoring confidence among farmers and strengthening the company’s financial position.
“This particular act of paying for farmers’ credited stocks is going to restore credibility and rebuild the trust at the grassroots, the very foundation of our sector. This GNACOFA-backed facility which was supported by 30 million credited stocks is proof that PBC is not merely surviving but actively restructuring,” Ayisi said.
GNACOFA National President Stephenson Anane Boateng said the partnership is expected to help address structural challenges in the cocoa sector, including smuggling and illegal mining.
“This partnership with PBC presents an opportunity to establish stronger systems and structures that will directly support cocoa farmers and improve their welfare,” he said.
The agreement is also expected to stabilise farmer incomes at a time when Ghana’s cocoa sector continues to face financing and operational pressures linked to liquidity constraints within the state-controlled purchasing system.
According to Reuters, PBC currently carries debts of about GH¢673 million (US$60 million), raising concerns over potential asset seizures. The company is also reported to have arrears of approximately GH¢24 million owed to farmers for more than 9,000 bags of cocoa already delivered.
To address wider financing gaps in the sector, Ghana is planning to raise US$1 billion through domestic bonds to support cocoa purchases ahead of the upcoming season.
According to Ghana Cocoa Board leadership, the bond will be issued before the new cocoa season in August and denominated in the local currency, the cedi.
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