Cocoa Processing Company is on the verge of bankruptcy – Bright Simons

The Vice President of policy think-tank IMANI Africa has noted that Ghana’s main state-owned cocoa trader is on the verge of bankruptcy.

In January 2023, he hinted at the company’s decision to reduce its staff population by one-third due to financial challenges.

According to him, the company had reduced its staff strength from 3000 to less than 1000 as of 2023 and was still planning on letting more workers go.

Bright lamented the predicament of the workers while adding that the management of the company is not affected by the mass layoffs.

“PBC's situation is now beyond repair. Cocoa Processing Company (CPC) is also on the verge of bankruptcy. Meanwhile, Cocobod is unable to benefit from sky-high spot prices bcos it hardly has any cocoa to sell, having collateralised most output. Will SOEs ever work in Gh?” he wrote on X on January 26, 2024.

In 2023, he explained that: “PBC has been bankrupt (negative equity) for years. A. Stated capital has shrunk from $10.5m in 2000 to $1.25m today. B. Revenue has fallen from $550m in 2017 to less than $100m today. C. Market share is down from 70% in 1998 to 25% today. Mgmt never suffer, only workers.”

SSD/NOQ

PBC's situation is now beyond repair. ???? Cocoa Processing Company (CPC) is also on the verge of bankruptcy. Meanwhile, Cocobod is unable to benefit from sky-high spot prices bcos it hardly has any cocoa to sell, having collateralised most output. Will SOEs ever work in Gh????? https://t.co/LaYt6F1gq9

— Bright Simons (@BBSimons) January 26, 2024