Licensed cocoa buying companies (LBCs) could struggle to finance cocoa purchases in the new season if the Ghana Cocoa Board (COCOBOD) fails to settle about GH¢4 billion owed to them from the previous season.

The Chamber of Cocoa Marketers Ghana (CCMG) said the outstanding payments have put LBCs under pressure from banks, which are demanding repayment of existing loans before granting fresh financing.

CCMG Chief Executive Officer Victus Dzah said the situation could prevent some licensed buyers from returning to the cocoa market when the new season opens.

“If we are not paid and another season is open, and we have to, we cannot even go to the market. That is it. Because banks have closed all the facility channels,” he stated.

According to Dzah, LBCs depend heavily on bank facilities to finance the purchase of cocoa from farmers.

GRA Customs revenue surges to $450 million a month after AI rollout

However, the outstanding payments from COCOBOD have made it difficult for the companies to repay their existing loans and secure new credit.

He said banks were asking LBCs when they intended to settle their outstanding obligations and had made it clear that additional credit facilities would not be available until those debts were repaid.

Dzah stressed that the GH¢4 billion debt relates to the cocoa season that has just ended and is not an old liability accumulated over several years.

“We know Cocoa Board will pay,” he said.

However, he indicated that the timing of the payment was crucial for LBCs that need financing to resume cocoa purchases.

The CCMG is therefore calling on COCOBOD to settle the outstanding payments to enable licensed buying companies to access the funds needed to operate in the new season.

The warning comes as stakeholders prepare for the opening of the new cocoa season, with LBCs facing challenges in securing sufficient financing to purchase cocoa from farmers.

DR/MA

Mahama’s New Car Loan Plan Could Make It Easier for Ghanaians to Own Cars