- COCOBOD released GH¢4.2 billion to LBCs to pay farmers owed since late 2025.
- The move is part of the Finance Ministry’s reforms to stabilize the cocoa sector.
- COCOBOD aims to clear all outstanding debts before the season ends in August.
The Ghana Cocoa Board (COCOBOD) has announced the disbursement of approximately GH¢4.2 billion to Licensed Buying Companies (LBCs) to settle outstanding debts owed to cocoa farmers. This significant financial release, confirmed on Thursday, March 12, 2026, is aimed at clearing arrears that have been accumulating since November last year.
The move comes as a major relief to thousands of farmers who have faced severe financial strain due to delayed payments for their produce. According to COCOBOD, the funds were released to ensure that liquidity is restored within the cocoa purchasing value chain, allowing LBCs to fulfill their obligations to the farmers immediately.
In a recent interview, Jerome Sam, the Head of Public Affairs at COCOBOD, stated that the institution is working tirelessly to ensure all outstanding payments are settled before the end of the current crop season. He explained that while some farmers had already been paid through pre-financing arrangements, this new injection of capital will address those still left in the gap.
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The disbursement follows a directive from the Ministry of Finance, led by Dr. Cassiel Ato Forson, as part of a broader set of reforms to stabilize the cocoa sector. The government is currently navigating a complex period of debt restructuring and financial cleanup within COCOBOD to ensure long-term sustainability for the industry.
Industry observers have noted that the delay in payments had begun to affect farmer morale and increased the risk of cocoa smuggling to neighboring countries. By clearing these arrears, COCOBOD hopes to restore trust and ensure that Ghana’s cocoa production targets for the 2025/2026 season remain achievable and secure.
Despite this massive release, some sector stakeholders have cautioned that the total debt owed to LBCs and banks remains high, requiring continued fiscal discipline. COCOBOD has reiterated its commitment to prompt payments moving forward, noting that the welfare of the cocoa farmer is the backbone of the national economy.
The board also highlighted that these payments are crucial for farmers to reinvest in their farms ahead of the next planting cycle. With the GH¢4.2 billion now in the system, the focus shifts to the LBCs to ensure the money reaches the pockets of the individual farmers without further administrative delays.
