The Ghana Cocoa Board (Cocobod) is appealing to the Bank of Ghana for urgent intervention to avert the collapse of indigenous Licensed Buying Companies (LBCs), as a major financing shortfall threatens to cripple the cocoa purchasing chain.
Speaking on PM Express Business Edition, Acting Cocobod CEO Dr. Randy Abbey called for a creative policy shift that would allow commercial banks to channel a portion of their statutory reserves to support local cocoa buyers. He proposed that 2–3% of the central bank’s Cash Reserve Ratio (CRR) — the 25% of customer deposits banks are required to keep at the Bank of Ghana — could be redirected to ease the cash squeeze facing local LBCs.
“These are idle funds just sitting at the central bank. We are not asking for everything — just a fraction to ensure these indigenous companies can continue buying cocoa,” Dr. Abbey stressed. “We can even restrict it strictly for cocoa purchases to avoid abuse.”
His proposal comes amid a sharp liquidity crisis in Ghana’s cocoa sector following Cocobod’s decision to forgo the traditional syndicated loan for the 2025/26 crop season — a move that has eliminated the usual seed capital given to LBCs for bean purchases.
While Cocobod says the shift is aimed at cutting financing costs and improving long-term sustainability, Dr. Abbey acknowledged the unintended consequences, particularly for local players who depend heavily on the seed funding.
“Without the syndicated loan, there is no seed money. This is already impacting operations, and we risk losing our indigenous LBCs entirely if we don’t act now,” he warned.
Cocobod’s new financing strategy includes a 60-40 shared responsibility model with international buyers, a system that has taken Dr. Abbey to Europe and North America to secure commitments. But back home, the situation for smaller Ghanaian cocoa firms remains dire.
The Bank of Ghana has requested a formal proposal from Cocobod, which has since been submitted. Dr. Abbey remains optimistic that the central bank will act swiftly to protect the local cocoa ecosystem from collapse.
“If we want Ghanaian ownership in the cocoa industry to survive, this is the moment for policy innovation,” he concluded.
