The Ghana Cocoa Board (COCOBOD) has acknowledged outstanding payments owed to licensed cocoa buying companies but has clarified that the reported GH¢4 billion debt is not a new development or an indication that the organisation is unable to meet its financial obligations.
The clarification follows concerns raised by the Chamber of Cocoa Marketers Ghana, which stated that licensed cocoa buying companies were owed approximately GH¢4 billion by COCOBOD.
The Chamber warned that the outstanding payments could affect the ability of some companies to finance cocoa purchases during the new cocoa season.Speaking on Eyewitness News on Tuesday, September 15, COCOBOD’s Head of Public Affairs, Jerome Kwaku Sam, explained that outstanding payments at the end of a cocoa season were not unusual. Editorial Standards
He said the previous cocoa season ended only about a month and a half ago, making it reasonable for some financial obligations to remain unsettled.
“So if the season ended just about a month and a half ago, it is only reasonable, logical, that there possibly could be some outstanding amounts that COCOBOD would have to make to the licensed buying companies or the chamber,” Mr Sam stated.Licensed buying companies play a crucial role in Ghana’s cocoa supply chain.
They purchase cocoa beans from farmers and deliver them to COCOBOD under the established cocoa purchasing system.
After the beans are taken over, the companies submit Cocoa Takeover Receipts (CTORs) to COCOBOD for payment.
According to Mr Sam, COCOBOD has had to prioritise payments to cocoa farmers, who are responsible for producing the beans that sustain the industry.“Our farmers as well as the licensed buying companies. So between these two stakeholders, we thought that prioritizing the cocoa farmer who does the cultivation and who makes available the beans for us to give in purchase and sell ought to be prioritised,” he explained.
He, however, stressed that the decision to prioritise farmers should not be interpreted as a refusal to settle outstanding payments owed to licensed buyers.Mr Sam disclosed that discussions with the licensed cocoa buying companies and the Chamber of Cocoa Marketers were being prepared to resolve the outstanding obligations. Corrections Policy
“Plans are far advanced to meet with the licensed buying companies or the chamber to iron out all outstanding payments that we have,” he said.The current payment situation is also linked to changes in COCOBOD’s financing arrangements.
The organisation is transitioning from its previous financing model to a new funding structure, a process that requires consultations with relevant stakeholders.
Mr Sam noted that concerns over outstanding payments to licensed cocoa buyers were not new. He referenced previous concerns raised by the Chamber, including complaints dating back to 2023 about unpaid balances carried over from one cocoa season to another.
He maintained that the existence of outstanding payments did not automatically mean COCOBOD was financially incapable of meeting its obligations.
“I am not in any stretch of imagination saying that that should be the case, but I am only stating that if we have an outstanding like this, it does not epitomize Cocoa Board’s inability to settle its debt obligation to the licensed buying companies,” he stated.
The COCOBOD official also acknowledged the financial pressure faced by licensed buying companies, particularly as they prepare to purchase cocoa for the new season.
He said the organisation was considering arrangements to help address their financing concerns and ensure that cocoa buying activities continue without major disruption. Newscard
The reported GH¢4 billion debt has raised concerns within the cocoa industry because licensed buying companies depend on timely payments to maintain their operations, pay suppliers, transport cocoa and secure financing for subsequent purchases.
While COCOBOD insists that outstanding balances are part of the normal post-season payment process, the issue remains significant for cocoa buyers seeking financial certainty ahead of the new season.
The planned engagement between COCOBOD and the Chamber of Cocoa Marketers is therefore expected to provide further clarity on the exact outstanding amount, payment timelines and measures being considered to support licensed buying companies.
For now, COCOBOD maintains that it recognises its obligations and is working toward resolving the outstanding payments while managing the transition to a new cocoa-sector financing arrangement.