By Mavis Paintsil, Accra
Ghana’s cocoa industry is facing severe financial difficulties, with the Ghana Cocoa Board (COCOBOD) struggling to pay farmers and Licensed Buying Companies (LBCs).
The crisis stems from COCOBOD’s inability to secure its traditional syndicated financing facility, leading to a funding shortfall
The Licensed Cocoa Buyers Association of Ghana (LICOBAG) attributes the crisis to COCOBOD’s failure to arrange a $1.3 billion syndicated loan, securing only $500 million instead.
This has forced LBCs to pre-finance cocoa purchases through commercial banks at high interest rates, plunging them into debt.
Key Issues
- Unpaid Farmers
- Farmers have not been paid for cocoa beans supplied since November, affecting their livelihoods and investment in the next harvest.
- Debt Burden: COCOBOD’s total debt stands at GH¢32.91 billion, including a $481 million loan due in the 2025/26 season.
- Funding Model: COCOBOD is exploring a new funding model to reduce reliance on raw cocoa bean exports and promote value addition
Follow-up Questions:
- What specific measures is COCOBOD taking to address the funding crisis and ensure timely payments to farmers?
- How will the proposed new funding model impact the cocoa industry, and what are the potential benefits and challenges.
- ghanaianannouncer
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