The Ghana Cocoa Board has acknowledged delays in COCOBOD cocoa buyer payments but rejected suggestions that the arrears show it is unable to meet its financial obligations.
The admission follows a claim by the Chamber of Cocoa Marketers Ghana that licensed buying companies are owed about GH¢4 billion.
The Chamber has warned that the unpaid amount could weaken the companies’ ability to obtain financing and purchase beans during the new cocoa season.
COCOBOD has not independently confirmed the GH¢4 billion figure.
Its Head of Public Affairs, Jerome Kwaku Sam, said some payments normally remained outstanding after the close of a crop season.
“So if the season ended just about a month and a half ago, it is only reasonable, logical, that there possibly could be some outstanding amounts that COCOBOD would have to make to the licensed buying companies or the chamber.” - Jerome Kwaku Sam
Farmers received priority
Licensed buying companies purchase cocoa from farmers on COCOBOD’s behalf and submit Cocoa Takeover Receipts for reimbursement.
Delayed payments can leave the companies short of working capital, particularly where their purchases were financed through bank loans.
Mr Sam said COCOBOD had chosen to prioritise farmers because they produce the beans on which the entire industry depends.
“Between these two stakeholders, we thought that prioritising the cocoa farmer who does the cultivation and who makes available the beans for us to purchase and sell ought to be prioritised,” he said.
That choice has not removed the pressure on buying companies. They still need money to clear existing liabilities and finance purchases as the new season begins.
Talks planned with cocoa buyers
COCOBOD is preparing to meet the Chamber and licensed buying companies to reconcile the unpaid claims and agree on a way forward.
“Plans are far advanced to meet with the licensed buying companies or the chamber to iron out all outstanding payments that we have,” Mr Sam said.
He linked part of the delay to COCOBOD’s transition from its previous funding model to a new financing arrangement, which has required consultations with industry stakeholders.
Mr Sam also pointed to similar complaints dating back to 2023, when outstanding balances were carried into subsequent crop seasons.
“I am not in any stretch of imagination saying that that should be the case,” he said. “But if we have an outstanding like this, it does not epitomise Cocoa Board’s inability to settle its debt obligation.”
The immediate concern is liquidity. Until the arrears are settled, licensed buyers may struggle to secure fresh credit, potentially slowing cocoa purchases and payments to farmers.
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