COCOBOD disburses GH¢4.2bn to Licensed Buying Companies to settle cocoa farmer arrears
The Ghana Cocoa Board (COCOBOD) has released about GH¢4.2 billion to Licensed Buying Companies (LBCs) to enable them pay cocoa farmers who have been awaiting payment for their produce since November last year.
The disbursement forms part of ongoing measures to settle arrears within the cocoa industry and rebuild trust among farmers and other stakeholders along the cocoa value chain.
The development also comes on the back of a set of reforms recently announced by the Minister for Finance, Cassiel Ato Forson, aimed at restructuring Ghana’s cocoa sector and addressing outstanding debts owed to farmers and other industry participants.
In an interview on Thursday, March 12, 2026, Head of Public Affairs at COCOBOD, Jerome Sam, indicated that the Board remains committed to ensuring that all arrears owed to cocoa farmers are fully cleared before the end of the 2025/2026 cocoa season.
He disclosed that the GH¢4.2 billion had already been transferred to the Licensed Buying Companies as of last week to facilitate payments to farmers across the country’s cocoa-producing regions.
Mr. Sam explained that although some farmers are yet to receive payment, others have already been paid due to pre-financing arrangements between COCOBOD and the Licensed Buying Companies.
According to him, challenges with securing the cocoa syndicated loan facility in 2023 compelled some Licensed Buying Companies to pre-finance cocoa purchases, after which COCOBOD reimbursed them.
“Some of the payments are recent, while others relate to earlier transactions. Since 2023, when we encountered challenges with the syndicated loan, Licensed Buying Companies occasionally stepped in to pre-finance cocoa purchases. COCOBOD subsequently reimburses them for those purchases,” he stated.
“This explains why some farmers have already been paid by the LBCs, while others still have outstanding payments. As COCOBOD, we are working diligently to ensure that all funds owed to the Licensed Buying Companies are settled so they can, in turn, clear any outstanding payments due their cocoa farmers,” he added.
Mr. Sam further noted that COCOBOD is focused on improving liquidity within the cocoa purchasing system to ensure farmers receive prompt payment and to support sustained cocoa production across the country’s growing regions.
“We are hopeful that all outstanding payments will be completed before the end of the season, which is expected around August or September,” he said.
