The Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Dr Randy Abbey, has explained the real cause of the recent challenges faced by cocoa farmers and COCOBOD regarding payments and arrears within the cocoa sector.

According to him, the collapse of the long-standing syndicated loan agreement has crippled the financing of cocoa purchases.

There have been a series of debates from both the Minority in Parliament and cocoa farmers over delays in the payment of arrears owed to them.

Speaking on The Big Issue on TV3, Dr Abbey noted that based on historical cocoa financing, the government initially fully funded cocoa purchases in the country until the introduction of syndicated loans about 34 years ago.

He explained that under the agreement, COCOBOD relied solely on loans from a consortium of banks to finance cocoa purchases annually, a system that remained in place for about 32 years.

Over GH¢620 million paid to LBCs - COCOBOD

However, he pointed out that the model broke down during the 2023/2024 crop season. This led to defaults in cocoa payments, while the Domestic Debt Exchange Programme (DDEP) further undermined lenders’ confidence.

“Because at that time, Cocoa Board had defaulted on its cocoa bills, had undertaken a DDEP, and its finances had become terrible. For the first time in the history of syndicated loans, in 2023/2024, although the season started in September, the first tranche of the syndicated loan landed in Cocoa Board’s coffers on December 22 — almost four months after the season had opened. So, at the time when cocoa prices had reached 10,000, 11,000, and 9,085, Ghanaian cocoa farmers, Cocoa Board, and other stakeholders could not benefit from that,” he explained.

He stressed that the delayed financing severely affected cocoa purchases and deliveries.

He added that during the 2023/2024 season, when the syndicated facility was eventually secured, the funds arrived far too late.

Buyers find our cocoa very expensive as compared to other cocoa-producing countries; hence, some have switched, which affects our financing model.

- Dr Randy Abbey (Ghana Cocoa Board, CEO) explains the delay in payment of cocoa farmers' arrears.#TV3NewDay #TV3GH pic.twitter.com/ag2CiaEMER

— #TV3GH (@tv3_ghana) February 4, 2026