COCOBOD Releases GH¢2.6 Billion to Pay Cocoa Farmers and Clear Arrears for 2025/26 Season

The Ghana Cocoa Board (COCOBOD) has announced the release of GH¢2.6 billion to Licensed Buying Companies (LBCs) to facilitate payments to cocoa farmers across the country. This latest disbursement is part of a broader financial strategy to support the 2025/26 crop season, bringing the total funds distributed to LBCs since the start of the season to approximately GH¢34.52 billion. The move is intended to ensure that cocoa farmers, who are the backbone of the industry, receive prompt compensation for their produce through the approved purchasing system.

A significant portion of the newly released funds, totaling GH¢1.4 billion, has been specifically designated to clear outstanding balances owed to farmers who sold their cocoa on credit. COCOBOD has emphasized its commitment to settling these arrears, assuring that no farmer will be denied payment for cocoa sold through legitimate channels. The regulator has urged farmers who are still awaiting payments to contact their respective Licensed Buying Companies for updates and resolution of any delays.

To ensure the integrity of the disbursement process, COCOBOD has implemented robust monitoring mechanisms designed to track the flow of funds from LBCs directly to the farmers. This initiative underscores the government's dedication to safeguarding farmer welfare and maintaining the long-term sustainability of the cocoa sector. The Board expressed its gratitude to the farming community for their continued resilience and vital contributions to the national economy, particularly during periods of market fluctuation.

This injection of liquidity comes at a critical time for the industry, which has seen a shift in growth dynamics. Recent economic data indicates that Ghana's cocoa sector experienced a 3.8% year-on-year growth in the first quarter of 2026. While this represents a slowdown from the significant 23.1% rebound recorded in the first quarter of 2025, the sector remains a key GDP contributor. Meanwhile, international cocoa prices have remained relatively strong, rebounding to nearly US$5,000 per tonne after previously dipping below the US$4,000 mark.

By prioritizing the clearance of debts and ensuring steady payment cycles, COCOBOD aims to stabilize the industry and encourage continued production despite the moderate growth phase. The ongoing support for farmers is seen as a strategic necessity to maintain Ghana's position in the global market and to ensure that the domestic supply chain remains resilient against both local logistical challenges and international price volatility.