Accra: The Ghana Cocoa Board (COCOBOD) has announced a significant payment to Licensed Buying Companies (LBCs), totaling GHS1.091 billion. This was revealed by the Head of Corporate Communications, Jerome Kwaku Sam, who detailed that an initial payment of GHS237 million was made for 50,000 metric tonnes of cocoa, followed by an additional GHS854 million disbursed as of Thursday, February 19, 2026.
According to Ghana Web, the announcement arrives at a time when Ghana's cocoa sector is encountering notable challenges. Sam clarified that the delays in payments were not due to inefficiencies within COCOBOD, but were instead attributed to changes in financing arrangements and the hurdles faced in accessing syndicated funding.
Jerome Kwaku Sam emphasized that COCOBOD has increasingly relied on international buyers to finance cocoa purchases, with LBCs required to pre-finance farmer payments before receiving reimbursements. In response to the financial strains, the government has introduced reforms, including a reduction in the producer price for the remainder of the 2025/2026 crop season. The new price is set at GHS41,392 per tonne, equivalent to GHS2,587 per bag, aimed at safeguarding farmers amid declining global cocoa prices.
COCOBOD has also implemented cost-saving measures, anticipating a monthly saving of approximately GHS5 million following salary reductions for its executive management and senior staff. Executives are taking a 20 percent pay cut, while senior staff face a 10 percent salary reduction. These cuts have already been enacted and will persist throughout the 2025/2026 crop year.
LBCs have been under pressure to pre-finance cocoa purchases using high-interest loans from commercial banks, with the Ghana Reference Rate recently hovering around 29.8 percent. This financial burden was exacerbated by COCOBOD's delayed payment for cocoa delivered to ports during the 2023/2024 season, which was only received on January 26, 2024, six months late.
For the ongoing 2025/2026 season, which commenced in August, COCOBOD has revised its funding formula to an 80/20 model. Under this arrangement, LBCs receive 80 percent of funds upfront to cover farmer payments and handling costs, with the remaining 20 percent settled upon delivery to COCOBOD.