Ghana Cocoa Crisis Deepens as Farmers Remain Unpaid Despite $337 Million Release
The Ghanaian cocoa sector is facing a severe crisis as farmers continue to wait for payments months after delivering their crops, despite the industry regulator releasing substantial funds intended to clear their arrears. The Ghana Cocoa Board (COCOBOD) confirmed last week it had disbursed 3.62 billion cedis, equivalent to approximately $336.74 million, to Licensed Buying Companies (LBCs). This significant allocation was specifically designated to settle outstanding payments owed to farmers, with some debts reportedly stretching back to November 2025.
Issued following a directive from the finance ministry, the funds were meant to facilitate prompt payments to growers and improve liquidity across the struggling cocoa industry. However, farmers and purchasing clerks alike report that the money has not yet reached them, raising serious questions about the funds' actual use. There are growing suspicions that the money might instead be servicing debts owed by cocoa buyers to local banks.
Farmers and Clerks Voice Frustration Over Unpaid Deliveries
Purchasing clerk Justice Osei Bonsu expressed the widespread frustration, stating, "We have still not been paid since November. Farmers think we are holding their money, but the truth is we have not received anything." Another purchasing clerk, Enoch Egyir, highlighted that payments under both the previous cocoa price and those under the price announced in February remain outstanding. "They have not paid us for what we delivered under the old price since November, nor for what we delivered under the new price," he said. "We plead with the government to intervene."
Farmer Ebenezer Asiful detailed his own plight, owed payment for more than 35 bags of cocoa delivered since December, as well as 11 bags supplied after the recent price reduction. "We heard in the news that COCOBOD has released funds," he said. "So how is it that the LBC we work with has not received any money to pay us?" COCOBOD has not immediately responded to requests for comment regarding these allegations, leaving many in the industry without answers.
Industry Leaders Urge Patience Amid Systemic Challenges
Industry players acknowledge that payments cannot be made immediately across the entire sector due to its scale. Samuel Adimado, president of the Licensed Cocoa Buyers Association of Ghana, told local media, "With between 800,000 and one million cocoa farmers, payments cannot be made at the same time." He noted that COCOBOD was still in the process of releasing funds to licensed cocoa buyers and urged farmers yet to be paid to remain patient.
However, the situation is complicated by significant debts within the supply chain. Buyers currently owe local banks between 7 billion and 8 billion cedis, debts accumulated after they took out loans to prefinance cocoa purchases. Adimado said the association had advised its members to prioritise payments to farmers once they receive funds from COCOBOD. "We know you owe the banks, but prioritise the farmers once you receive any funds from COCOBOD," he emphasised.
This ongoing payment crisis threatens to undermine confidence in Ghana's cocoa industry, a critical component of the national economy. As farmers await their dues, the delay in disbursing the released funds highlights broader issues of liquidity and debt management within the sector, calling for urgent government and regulatory intervention to stabilise the market and support those at its foundation.
