Dr Randy Abbey and the COCOBOD Reset: Rebuilding from a GH¢32.9bn debt burden

COCOBOD was in junk status saddled with debts prior to the appointment of Dr. Randy Abbey.

For the first time in the entire 79 years history of COCOBOD, the institution’s liabilities in 2024 had risen to about GH¢32.9 billion, with its equity turning negative at approximately GH¢3.8 billion, compared with positive equity of about GH¢1.8 billion in 2016.

That was the situation Dr. Randy Abbey stepped into.

Rather than being overwhelmed by the numbers, he has approached the challenge with a focus on stabilisation, innovation and rebuilding confidence in Ghana’s cocoa sector.

Under his leadership in 2026, COCOBOD has paid GH¢2.68 billion to DDEP bondholders and cleared a separate GH¢162 million owed to Cocoa Bill holders, meeting mandatory obligations due for the year.

Another sign of the ongoing recovery is COCOBOD’s ability to raise GH¢3.39 billion in the first tranche of its new domestic financing programme at an interest rate of 11%.

The funds will support cocoa purchases for the 2026/27 crop season.

This forms part of the broader GH¢16.3 billion Domestic Cocoa Notes Programme, designed to improve liquidity, ensure timely cocoa purchases and help address COCOBOD’s outstanding financial obligations.

In simple terms, COCOBOD is working to put the financing of cocoa purchases on a more sustainable footing.

But how did COCOBOD get here?

Between 2018 and 2024, COCOBOD relied heavily on syndicated borrowing, (about $7.9B), to finance cocoa purchases, farmer inputs and other operations.

Sadly, significant portions were diverted.

An area of major concern was the cocoa roads programme, a total of GH¢26B was spent, with GH¢21B between 2018-2021 alone despite no budgetary allocations for roads in those periods. Dr. Bawumia's brother, Abraham Bawumia was awarded a road contract worth ¢87 million under a Single Source contract that was three times the actual value of the contract.

[Paragraph 65 of the Performance Audit Report by the Auditor-General on the Construction of Cocoa Roads.]

At the same time, cocoa production faced other challenges, including cocoa smuggling, difficulties with farm rehabilitation. For a fact, only 40,000 hectares were rehabilitated out of 156,000 planned, leaving GH¢700M unaccounted.

Also, over 200 containers of jute sacks/agrochemicals were left stranded/unused at ports, causing shortages and losses.

By 2024, COCOBOD was therefore not simply dealing with a cash-flow problem. It was dealing with a deep structural financial problem.

This is why the current developments at COCOBOD deserve attention.

Dr. Randy Abbey did not inherit an institution starting from a clean slate. He inherited an institution that needed to rebuild its finances while simultaneously ensuring that cocoa farmers continued to receive support and that cocoa purchases could continue without disruption.

His approach has increasingly centred on financial restructuring, new financing mechanisms, improved liquidity and innovative approaches to the management of the cocoa sector.

The GH¢3.39 billion raised under the new domestic financing programme is therefore more than just another financial transaction.

It represents an attempt to move COCOBOD away from the financial pressures of the past and towards a more sustainable financing model.

For Ghana’s cocoa sector, the objective is bigger than settling old debts.

It is about rebuilding confidence, improving liquidity, supporting farmers and ensuring that COCOBOD can once again operate from a position of financial strength.

The reset has begun.