COCOBOD Clears GH₵2.4bn Debt to Licensed Buying Companies — Farmer Payments by April 30

The Ghana Cocoa Board (COCOBOD) has cleared GH₵2.4 billion in outstanding debt owed to licensed buying companies (LBCs), unlocking long-delayed harvest payments for tens of thousands of cocoa farmers across the country.

The payment covers the 2025/26 main crop season and will be disbursed to individual farmers through LBC networks by April 30, according to the Ghana Cocoa Board. The announcement follows months of pressure from farmer associations and growing reports that payment delays were pushing some growers toward illegal cocoa channels and side-selling.

Why the Delay?

COCOBOD has been under severe financial strain. The board’s working capital deficit widened after cocoa yields fell approximately 12 percent in the 2024/25 season due to El Niño-linked drought conditions and the ongoing impact of the cocoa swollen shoot virus. International cocoa prices, while elevated, have not fully compensated for lower volumes.

LBCs — which purchase cocoa from farmers on COCOBOD’s behalf and advance credit — had themselves accumulated debt to commercial banks while waiting for reimbursement. Several LBCs had suspended operations in some districts, effectively cutting off farmers from the formal market.

Government Intervention

The GH₵2.4 billion clearance was facilitated through a combination of a bridging facility from the Bank of Ghana, partial proceeds from the forward sale of the 2026/27 cocoa crop, and a government-backed bond issued last week. Finance Minister Ato Forson confirmed the mechanism in a statement to Parliament on Thursday.

COCOBOD CEO Joseph Boahen Aidoo said the board is committed to ensuring that this situation does not recur, announcing a restructured liquidity framework ahead of the October new-season start.

What It Means for Farmers

Approximately 800,000 smallholder farmers are expected to receive outstanding payments within the next two weeks. For many, this represents income from a harvest delivered four to six months ago.

The National Association of Cocoa Farmers welcomed the move but called for permanent reform of COCOBOD’s financing structure, warning that the annual liquidity crisis pattern was unsustainable.

Source: Ghana Cocoa Board / Ghana News Agency