The Ghana Cocoa Board (COCOBOD) has released more than GH¢620 million in February 2026 to Licensed Buying Companies (LBCs) to settle outstanding payments and enable them to pay cocoa farmers for their produce.

Head of Corporate Communications, Jerome Kwaku Sam, explained that the latest disbursement follows significant payouts in recent months.

This includes GH¢6 billion in January 2026, GH¢5 billion in December 2025, and another GH¢6 billion in November 2025.

Speaking on Citi Eyewitness News, Sam stated that the delays in payments were not due to COCOBOD’s failure but attributed it to the changes in financing arrangements and challenges in accessing syndicated funding.

According to him, the board had to rely on international buyers to finance cocoa purchases, with conditions requiring LBCs to pre-finance farmer payments before being reimbursed.

“In fact, in November, we made over GH¢6 billion, December we made over GH¢5 billion, and even January, we made GH¢6 billion. This month alone we have paid over GH¢620 million.

Licensed Cocoa Buyers Association sounds alarm on cocoa funding crisis.

“We are indeed paying monies to them (LBCs) for them to also pay the farmers whatever amount that is outstanding,” he stated.

His remarks follow public backlash over the delayed payment of cocoa farmers for several months.

Sam said COCOBOD is working on a new financing model under the current administration to ensure more sustainable funding and prevent future delays.

In recent months, LBCs have been compelled to pre-finance cocoa purchases using high-interest loans from commercial banks, with the Ghana Reference Rate standing at 29.8 per cent.

This left them bearing heavy costs, as COCOBOD’s first payment for cocoa delivered to ports in the 2023/2024 season did not arrive until January 26, 2024, which was six months later.

For the ongoing 2025/2026 season, which opened in August, the funding formula has been revised to an 80/20 model.

Under this arrangement, LBCs receive 80 per cent upfront to cover farmer payments and handling costs, while the remaining 20 per cent is settled upon delivery to COCOBOD.

SA/AE



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