The Ghana Cocoa Board (COCOBOD) has disbursed GH¢4.2 billion to Licensed Buying Companies (LBCs) to facilitate payments to cocoa farmers who have been awaiting their dues since November last year.

The disbursement forms part of COCOBOD’s ongoing efforts to clear outstanding debts within the cocoa sector and restore confidence among farmers and other stakeholders.

The move follows reforms announced in February by Cassiel Ato Forson, Ghana’s Finance Minister, aimed at restructuring the industry and addressing arrears owed to farmers and other players across the cocoa value chain.

Speaking in an interview with Citi FM, COCOBOD’s Head of Public Affairs, Jerome Sam, reaffirmed the institution’s commitment to clearing all outstanding payments before the end of the 2025/2026 cocoa season, expected around August.

According to him, the funds have already been released to LBCs to enable them to pay farmers. While some farmers have received their payments, others are still awaiting theirs due to earlier financing arrangements.

“Some of the payments are recent, while others are older. Since 2023, when we experienced challenges with the syndicated loan, Licensed Buying Companies sometimes stepped in to pre-finance cocoa purchases. COCOBOD later reimburses them for those purchases,” he explained.

“That is why some farmers are not owed by the LBCs, while others still have outstanding payments. As COCOBOD, we are working tirelessly to ensure that every cedi owed to the Licensed Buying Companies is paid so they can also settle any outstanding debts with their cocoa farmers.”

Mr Sam further emphasised COCOBOD’s focus on improving liquidity within the cocoa purchasing system to ensure prompt payments and sustain production across the country’s cocoa-growing areas.

“We hope to complete all payments before the close of the season, which is expected to end around August or September,” he added.