The Ghana Cocoa Board (COCOBOD) has fallen short of its June deadline to clear outstanding payments owed to cocoa farmers and Licensed Buying Companies (LBCs), leaving about GH¢3.4 billion in arrears still unsettled.
The development comes despite earlier assurances from the Board that almost all outstanding debts, estimated at more than GH¢6 billion, would be cleared by the end of June.
COCOBOD’s Head of Public Affairs, Jerome Sam, had indicated during an interview on JoyNews’ PM Express on June 15 that the Board was confident of completing the payments within the stated period, adding that any balance left would be minimal.
However, an update released by COCOBOD after the deadline showed that only GH¢2.6 billion had been disbursed towards settling the outstanding obligations.
The Board said GH¢1.4 billion of the amount would go towards paying farmers who supplied cocoa on credit, while GH¢1.2 billion would reimburse LBCs that financed cocoa purchases.
The latest payment represents about 43 per cent of the total debt owed, leaving more than half of the outstanding amount unresolved.
The delay has renewed concerns among stakeholders in the cocoa sector, particularly LBCs that depend on timely reimbursements after securing financing to purchase cocoa from farmers.
Farmers who are awaiting payment for previous supplies are also facing difficulties managing their finances and preparing for subsequent farming activities.
Although COCOBOD’s latest intervention has reduced the size of the debt burden, the failure to meet the June target highlights continued financial pressures within the cocoa sector and raises questions about the timeline for clearing the remaining obligations.
The Board is expected to provide further updates on efforts to settle the outstanding GH¢3.4 billion owed to farmers and LBCs.
