Ghana's Cocoa Sector Faces Payment Crisis Amid Calls for Reform

Ghanaian cocoa farmers are expressing significant concerns over unpaid deliveries, despite the Ghana Cocoa Board (COCOBOD) disbursing 3.62 billion cedis ($336.74 million) to Licensed Buying Companies (LBCs) to settle outstanding payments. These funds were intended to address debts owed to farmers, some of which date back to November 2025. However, farmers and purchasing clerks report that payments have not been received, raising suspicions that the funds may be used to service debts owed by cocoa buyers to banks rather than reaching the farmers directly. Purchasing clerk Justice Osei Bonsu stated, “We have still not been paid since November,” while farmer Ebenezer Asiful noted he is owed for cocoa delivered since December.

The IndependentConfront cocoa crisis head-on with structural reforms – Vicky Bright urges gov’t

Samuel Adimado, president of the Licensed Cocoa Buyers Association of Ghana, acknowledged the challenges in making immediate payments across the sector, which comprises between 800,000 and one million cocoa farmers. He indicated that while COCOBOD continues to release funds, farmers must remain patient as payments cannot be processed simultaneously. Adimado emphasized the importance of prioritizing payments to farmers once funds are received, despite the significant debts buyers owe to local banks, estimated between 7 billion and 8 billion cedis.

The IndependentConfront cocoa crisis head-on with structural reforms – Vicky Bright urges gov’t

Legal practitioner Victoria Bright has called for urgent reforms to address the challenges facing Ghana's cocoa sector. She highlighted the declining participation of young people in cocoa farming and the aging demographic of current farmers, many of whom have worked in the industry for decades. Bright stressed that cocoa remains a crucial part of Ghana's economy but warned that without meaningful structural changes, the sector risks being trapped in a cycle of financial bailouts. She advocated for a guaranteed producer price and a stabilization fund to protect farmers from market volatility, arguing that current proposals could leave farmers vulnerable to international price fluctuations.

Confront cocoa crisis head-on with structural reforms – Vicky Bright urges gov’tThe Independent

Bright's concerns extend to the cocoa financing architecture, which she believes must be resilient to global price changes. She warned that without a proper buffer, reforms may merely redistribute risk rather than address the underlying issues. “At the end of the day, without that buffer, we’re not really reforming risk — we’re just redistributing the risk,” she stated. Bright concluded that any reform package must enhance the welfare of farmers, whose contributions are vital to Ghana's economic stability.

Confront cocoa crisis head-on with structural reforms – Vicky Bright urges gov’tThe Independent

While COCOBOD has confirmed the release of funds, discrepancies remain regarding the actual distribution to farmers. The lack of timely payments has led to frustration among farmers and purchasing clerks, who question the efficacy of the financial measures taken. The situation highlights the need for transparency and accountability in the cocoa sector to ensure that funds reach those who need them most.

The Independent

• “We have still not been paid since November,” — Justice Osei Bonsu, Purchasing Clerk

The Independent

• “We know you owe the banks, but prioritise the farmers once you receive any funds from COCOBOD,” — Samuel Adimado, President of the Licensed Cocoa Buyers Association of Ghana

The Independent

• “We are now facing a moment of structural truth in our cocoa industry. We have to confront it head-on,” — Victoria Bright, Legal Practitioner

Confront cocoa crisis head-on with structural reforms – Vicky Bright urges gov’t

• “At the end of the day, without that buffer, we’re not really reforming risk — we’re just redistributing the risk,” — Victoria Bright, Legal Practitioner

Confront cocoa crisis head-on with structural reforms – Vicky Bright urges gov’t