The Licensed Cocoa Buyers Association of Ghana (LICOBAG) has proposed a range of funding, pricing and policy reforms aimed at restoring stability and professionalism to Ghana’s cocoa industry, warning that without swift intervention the sector could face a prolonged downturn.
Speaking at a press conference in Accra on Thursday, February 5, LICOBAG’s Executive Secretary, Victus Dzah, said the cocoa sector is under severe strain due to funding challenges, weak sales strategies and governance shortcomings.
He noted that the careful implementation of the proposed measures could help return the cocoa industry to its former strength.
At the heart of LICOBAG’s proposals is an urgent review of the current funding framework for cocoa purchases. Mr Dzah suggested the adoption of a hybrid financing model that blends the former syndicated facility—both local and international—with the existing structure, to enable real-time payment for cocoa purchased and delivered to port by Licensed Buying Companies (LBCs).
To curb the exit of struggling LBCs from the industry, the Association also proposed the introduction of a limited seed-fund arrangement to help affected operators remain viable.
LICOBAG further urged government to secure emergency financing to pay for cocoa already produced, estimating that about 300,000 metric tonnes need to be paid for in phases between now and September. Mr Dzah warned that any delay could worsen financial distress throughout the cocoa value chain.
On financial accountability, he stressed that funds raised for cocoa purchases must be strictly protected from misuse.
“Funds secured for cocoa purchases must be ring-fenced and applied solely for that purpose, as COCOBOD’s core mandate is to purchase cocoa beans from farmers,” he said.
The Association also called for the immediate determination of the farmgate price to reduce uncertainty among farmers, buyers and other stakeholders, describing price clarity as critical to stabilising the sector.
In terms of trade and marketing, LICOBAG urged COCOBOD, the Cocoa Marketing Company (CMC) and traders to adopt a more proactive and results-driven sales strategy, supported by enhanced supervisory oversight of trading operations.
Mr Dzah also highlighted the need to rebuild professionalism within the sector through capacity development and improved job security for staff.
He called for the strengthening of professional training for CMC cocoa traders and the restoration of a credible succession plan to guarantee security of tenure, boost morale and improve overall professionalism.
LICOBAG further advocated a fundamental reset of cocoa sector reforms, urging COCOBOD to move beyond rhetoric and divest from non-core activities in order to refocus on effective extension services for farmers.
The Association also stressed the importance of stronger institutional collaboration and improved communication between LICOBAG and COCOBOD.
Concluding, Mr Dzah called on government to take deliberate steps to restore COCOBOD to its former stature, including fast-tracking the passage of a new Act to strengthen cocoa pricing mechanisms.
