The Ghana Cocoa Board (COCOBOD) has failed to meet its self-imposed end-of-June deadline to clear more than GH¢6 billion owed to cocoa farmers and Licensed Buying Companies (LBCs), leaving an estimated GH¢3.4 billion still outstanding.

The shortfall comes despite a firm assurance given by the Board's Head of Public Affairs, Jerome Sam, during an interview on JoyNews' PM Express on June 15 that the arrears would be almost entirely settled before the end of the month.

"Before the end of this month, if all farmers or all LBCs who are owed are not paid, I'm sure it will be left with an insignificant amount to be owed," Mr Sam said during the interview.

When pressed to confirm that the remaining balance would be cleared by the end of June, he responded: "Yes, that's what I'm saying."

However, figures released by COCOBOD after the deadline indicate that the Board has not fulfilled that commitment.

GH¢2.6bn released, but only part goes to arrears

In a statement announcing fresh financing for cocoa purchases, COCOBOD disclosed that it had released GH¢2.6 billion to Licensed Buying Companies.

According to the Board, GH¢1.4 billion has been earmarked to pay cocoa farmers who were still owed for cocoa supplied on credit in previous crop seasons, while GH¢1.2 billion will reimburse LBCs that pre-financed cocoa purchases from farmers.

Before this latest disbursement, COCOBOD had acknowledged arrears exceeding GH¢6 billion owed to farmers and LBCs.

Based on the Board's own figures, the GH¢2.6 billion released represents about 43% of the outstanding obligations, leaving approximately GH¢3.4 billion, or 57%, yet to be paid.

Promise falls short

The latest payment means COCOBOD has reduced its arrears but has not achieved the near-complete settlement it publicly promised.

Instead of the "insignificant amount" projected by management, more than half of the acknowledged debt remains outstanding.

The unpaid balance continues to weigh on Licensed Buying Companies, many of which financed cocoa purchases with borrowed funds while awaiting reimbursement from the Board. Delays in repayment can increase financing costs and constrain the liquidity needed to purchase cocoa in subsequent seasons.

For cocoa farmers, delayed payments can also affect household incomes and their ability to finance farm maintenance and inputs ahead of the next production cycle.

The latest figures, therefore, suggest that while progress has been made in reducing the debt burden, COCOBOD missed the timeline it publicly committed to just over two weeks earlier.