COCOBOD struggles to pay cocoa agents after coronavirus hit exports

COCOBOD is having a hard time paying debt owed purchasing agents after the coronavirus pandemic slowed exports and sales, the Bloomberg reports.

Purchasing agents typically secure beans from farmers and sell it to the regulator.

Spokesperson for Ghana Cocoa Board Fiifi Boafo states that his outfit has recorded poor gains due to lockdown restrictions at destination ports.

According to Bloomberg, their sources familiar with the matter said COCOBOD owes purchasing agents about GH ¢1.2 billion ($208 million).

Although Mr. Boafo declined to comment on the outstanding amount, he said the monies were mostly owed to foreign-owned buying companies.

Ghana has suffered a potential sales loss of $1 billion after prices declined from a high in February, the cocoa regulator said in April.

The losses may be worse due to plant disease and bad weather that has hit the crops.

Sales have begun to normalize and that should enable the regulator to pay the arrears, said Boafo.

“I’m confident that we will pay all outstanding debts owed to the licensed buying companies in the coming weeks,” he said.