The Ghanaian government has moved to assure cocoa farmers of a swift resolution to ongoing payment delays, announcing that all outstanding debts owed to them are expected to be settled within the next two to three weeks.
Dr. Peter Boamah Otokunor, the Director of Presidential Initiatives in Agriculture and Agribusiness, provided the update following a tour of cocoa-producing communities in the Western Region. During his visit, Dr. Otokunor engaged with farmers who highlighted delayed payments as a critical issue disrupting the current crop season.
“We have heard the concerns of our farmers, and the government is taking immediate action,” Dr. Otokunor stated in an interview with JoyNews. He confirmed that the government has already released close to GH¢4 billion over the past two weeks, following a direct presidential directive to the Finance Minister to address the financial bottlenecks.
The total debt owed to Licensed Buying Companies (LBCs) is estimated to be between $750 million and GH¢8 billion. Dr. Otokunor expressed optimism that clearing these arrears would restore normalcy, allowing LBCs to use their operational margins to resume purchasing at the newly announced producer price.
Persistent Challenges in the Cocoa Sector
Despite the government’s assurances, the sector continues to face significant headwinds. Industry reports indicate that as of early March 2026, LBCs were burdened by substantial debt to local banks, owing between GH¢7 billion and GH¢8 billion in pre-financing loans with interest rates nearing 29.8 percent.
This financial strain has raised concerns among stakeholders that a portion of the funds released by the Ghana Cocoa Board (COCOBOD) could be diverted to service these high-interest bank loans, rather than directly paying farmers who have already delivered their beans.
The payment crisis was previously acknowledged by COCOBOD CEO Randy Abbey. On February 6, he revealed that approximately 50,000 tonnes of cocoa remained in the hands of farmers due to a lack of buyers, attributing the standoff to high market prices that made Ghanaian beans too costly for some international traders.
Political and Parliamentary Scrutiny
The situation has also intensified political debate. The Minority caucus in Parliament has raised concerns about COCOBOD’s capacity to fully settle its obligations to LBCs within the promised timeframe. They have called for greater transparency in the disbursement of cocoa revenues to ensure funds reach their intended beneficiaries.
In response to these concerns, Dr. Otokunor reaffirmed the government’s commitment to resolving the issue. He emphasized that clearing the arrears is not just a financial necessity but a crucial step in rebuilding trust within Ghana’s cocoa marketing system and ensuring farmers can continue to sell their produce for the remainder of the season without disruption.
