Omanghana
The Ghana Cocoa Board (COCOBOD) has moved to clarify reports surrounding its outstanding cocoa sector debts, stating that it has not refused to pay the remaining arrears owed to industry stakeholders.
The board explained that it only partially missed its initial timeline to fully settle approximately GH¢6 billion in outstanding cocoa-related obligations, after releasing GH¢2.6 billion in payments and leaving a remaining balance of GH¢3.4 billion to be cleared.
The unpaid amount relates mainly to obligations owed to Licensed Buying Companies (LBCs) for cocoa purchased from farmers on credit during the 2025/2026 crop season.
GH¢2.6 Billion Released to Ease Financial Pressure
In early July 2026, COCOBOD released GH¢2.6 billion to support LBCs facing significant financial pressure due to delayed reimbursements.
The payment was divided into two main areas:
- GH¢1.4 billion was specifically allocated to settle payments owed to cocoa farmers who supplied their beans on credit.
- GH¢1.2 billion was used to reimburse LBCs that had financed cocoa purchases ahead of receiving payment from COCOBOD.
The release provided temporary relief to companies that had struggled with cash flow challenges after purchasing cocoa from farmers without immediate reimbursement.
However, because the total outstanding debt was estimated at GH¢6 billion, the payment did not fully eliminate the arrears, leaving GH¢3.4 billion still pending settlement.
Debt Delays Linked to Cocoa Sector Financial Crisis
COCOBOD’s delayed payments are linked to broader financial challenges that have affected the cocoa industry over recent years.
During the 2023/2024 cocoa season, Ghana experienced a major decline in cocoa production, with output falling by about 45% compared with expected levels.
The production shortfall affected the board’s ability to meet contractual obligations, including forward cocoa delivery commitments.
As a result, COCOBOD reportedly defaulted on more than 330,000 tonnes of contracted forward deliveries, contributing to losses exceeding $1 billion from forward contracts.
The financial strain weakened the board’s ability to maintain traditional financing arrangements and delayed payments throughout the cocoa supply chain.
Global Market Challenges Add Pressure
Beyond production challenges, COCOBOD has also faced difficulties linked to changing conditions in the international cocoa market.
Declining global cocoa demand, combined with reduced appetite from international syndication banks to provide financing, has forced the board to reconsider its funding strategy.
The organization is now transitioning toward increased reliance on domestic, cedi-denominated financing solutions rather than depending primarily on foreign syndicated loans.
Officials say the shift is aimed at improving financial stability, reducing exposure to foreign currency risks, and strengthening the long-term sustainability of cocoa sector financing.
COCOBOD Continues Broader Debt Clearance Efforts
While the remaining GH¢3.4 billion in cocoa-related arrears is still being processed, COCOBOD says it has continued efforts to clear other outstanding obligations and restore confidence in the institution.
One major milestone was the settlement of debts owed to holders of cocoa bills who opted out of Ghana’s 2023 Domestic Debt Exchange Program (DDEP).
On July 15, 2026, COCOBOD announced that it had fully paid GH¢162 million owed to individual Cocoa Bill holders.
The settlement was seen as part of efforts to rebuild trust among investors, financial institutions, and stakeholders connected to Ghana’s cocoa industry.
Commitment to Farmers and Industry Stability
COCOBOD has maintained that clearing outstanding obligations remains a priority and that the remaining arrears will be addressed as funds become available.
The board emphasized that its immediate focus is protecting farmers, supporting LBC operations, and ensuring the continued functioning of Ghana’s cocoa value chain.
Industry observers say resolving the outstanding payments will be critical for maintaining confidence among farmers and buyers ahead of future cocoa seasons.
As Ghana’s cocoa sector navigates financial restructuring, COCOBOD’s ability to restore liquidity, secure sustainable financing, and maintain timely payments will remain central to protecting the country’s position as one of the world’s leading cocoa producers.
Source: Omanghana
