Accra: The Ghana Cocoa Board (COCOBOD) has announced the release of more than GHS620 million to Licensed Buying Companies (LBCs) in February 2026. This funding aims to settle outstanding payments and enable LBCs to compensate cocoa farmers for their produce.
According to Ghana Web, the Head of Corporate Communications, Jerome Kwaku Sam, explained that this disbursement is part of a series of significant payouts made in recent months. These include GHS6 billion in January 2026, GHS5 billion in December 2025, and another GHS6 billion in November 2025. Speaking on Citi Eyewitness News, Sam attributed delays in payments not to COCOBOD's failure but to changes in financing arrangements and challenges in accessing syndicated funding. He emphasized that the board had to rely on international buyers to finance cocoa purchases, with conditions requiring LBCs to pre-finance farmer payments before receiving reimbursements.
Sam highlighted that payments to LBCs are ongoing to ensure that farmers receive any outstanding amounts. His comments come in response to public criticism regarding the delayed payment to cocoa farmers over several months. He further mentioned that COCOBOD is developing a new financing model under the current administration to secure more sustainable funding and prevent future delays.
In recent months, LBCs have been forced to pre-finance cocoa purchases using high-interest loans from commercial banks, with the Ghana Reference Rate at 29.8 per cent. This situation resulted in significant costs for LBCs, as COCOBOD's first payment for cocoa delivered to ports in the 2023/2024 season was delayed until January 26, 2024, six months later. For the ongoing 2025/2026 season, which began in August, the funding model has shifted to an 80/20 arrangement. Under this new system, LBCs receive 80 per cent upfront to cover farmer payments and handling costs, with the remaining 20 per cent settled upon delivery to COCOBOD.