COCOBOD Says Over GH¢17bn Paid to LBCs Since November, Cites Funding Delays
The Ghana Cocoa Board (COCOBOD) says it has commenced payments to Licenced Buying Companies (LBCs) to enable them settle outstanding payments owed cocoa farmers, following weeks of concerns over prolonged delays.
The move comes after the Minority in Parliament raised alarm over the financial hardship facing cocoa farmers who, according to lawmakers, have gone unpaid for several months.
Speaking at a press conference in Accra on Thursday, February 5, the Ranking Member on Parliament’s Food, Agriculture and Cocoa Affairs Committee, Isaac Yaw Opoku, warned that persistent payment delays were threatening livelihoods and posing risks to the sustainability of the cocoa industry.
He disclosed that COCOBOD owes LBCs more than GH¢10 billion for cocoa already purchased, a situation he said has left the companies severely financially constrained and unable to promptly pay farmers.
Responding to the concerns in an interview on Citi Eyewitness News, Head of Corporate Communications at COCOBOD, Jerome Kwaku Sam, attributed the payment delays to challenges in accessing syndicated financing.
According to him, the funding constraints compelled the board to depend on international buyers to finance cocoa purchases, arrangements that required LBCs to pre-finance cocoa purchases with COCOBOD reimbursing them later.
“In fact, in November we paid over GH¢6 billion, December over GH¢5 billion, and even in January we made payments of about GH¢6 billion. This month alone, we have paid over GH¢620 million,” Mr. Sam stated.
He added that COCOBOD is currently disbursing funds to LBCs to enable them clear all outstanding payments owed farmers.
“…We are indeed paying monies to them (LBCs) for them to also pay the farmers whatever amount that is outstanding,” he said.
Mr. Sam further disclosed that COCOBOD, under the current administration, is working on a new financing model aimed at strengthening funding flows to the sector and preventing a recurrence of similar delays.
He stressed that the payment challenges were not the result of institutional failure but rather a combination of funding constraints, changes in financing arrangements and the need to transition to a more sustainable funding framework.
COCOBOD reaffirmed its commitment to ensuring timely payments to cocoa farmers and maintaining the efficient functioning of the cocoa sector for all stakeholders.
