COCOBOD misses June target to clear over GH¢6bn debt, leaving GH¢3.4bn outstanding

The Ghana Cocoa Board (COCOBOD) has failed to meet its end-of-June deadline to settle more than GH¢6 billion in arrears owed to cocoa farmers and Licensed Buying Companies (LBCs), with approximately GH¢3.4 billion remaining unpaid.

This follows a statement made on June 15 by COCOBOD's Head of Public Affairs, Jerome Sam, during an interview on JoyNews' PM Express. He assured the public that nearly all outstanding debts would be paid before the month concluded, stating that any remaining balance by the end of June would be insignificant.

However, data released by COCOBOD after the deadline indicate that the debt was not cleared as projected. In an update on funding for cocoa purchases, the Board announced that it had released GH¢2.6 billion to LBCs.

According to COCOBOD, GH¢1.4 billion of this sum is allocated to pay farmers who previously supplied cocoa on credit, while GH¢1.2 billion is meant to reimburse LBCs that funded cocoa purchases.

Given that COCOBOD previously confirmed that its total debt to farmers and LBCs exceeded GH¢6 billion, this recent release covers roughly 43 per cent of the total arrears. This leaves about 57 per cent, or GH¢3.4 billion, still unpaid, falling short of the projection that only a minimal balance would remain.

The delayed payments continue to strain LBCs, many of which relied on borrowed capital to finance cocoa purchases in anticipation of COCOBOD's reimbursement. The backlog also affects farmers' incomes and their financial capacity to prepare for upcoming farming operations.

The latest data confirm that while COCOBOD has partially reduced its debt, it did not achieve its self-imposed timeline for clearing the arrears.