COCOBOD Misses GH¢6 Billion Debt Deadline as Ghana Secures Strategic Cocoa Export Deals in the Gulf

The Ghana Cocoa Board (COCOBOD) has failed to meet its self-imposed end-of-June deadline to clear over GH¢6 billion in outstanding debt owed to cocoa farmers and Licensed Buying Companies (LBCs). Despite previous assurances from COCOBOD’s Head of Public Affairs, Jerome Sam, that the majority of the arrears would be settled, approximately GH¢3.4 billion remains unpaid. To date, the Board has released only GH¢2.6 billion, representing roughly 43% of the total obligations. Of the funds disbursed, GH¢1.4 billion was allocated for farmer payments from previous crop seasons, while GH¢1.2 billion was directed toward LBC reimbursements. This significant shortfall has triggered financial distress for LBCs, many of whom rely on high-interest loans to finance cocoa purchases, and has severely restricted the household incomes and operational capacities of farmers preparing for the next production cycle.

While the industry grapples with these internal liquidity challenges, the Cocoa Marketing Company (CMC) Ghana Limited is making strides in expanding the sector's international footprint. Managing Director Wisdom Kofi Dogbey recently secured firm offtake commitments for semi-finished cocoa products from major commodity players in the United Arab Emirates and Saudi Arabia. These agreements align with a strategic mandate to achieve 50% local processing of Ghana’s cocoa, aiming to shift the country away from the export of raw beans toward higher-value products. In Dubai, discussions with the Dubai Multi Commodities Centre (DMCC) established a framework for integrating Ghanaian cocoa into global value chains, while engagements in Riyadh tapped into Saudi Arabia’s Vision 2030 food-security initiative.

These international expansion efforts are designed to utilize Ghana’s existing processing capacity more effectively rather than necessitating the construction of new facilities. By securing these Gulf markets, the CMC aims to ensure that increased domestic processing translates into guaranteed export earnings and price stability. However, the success of such long-term value-addition strategies remains tethered to the financial health of the domestic supply chain. Industry analysts suggest that until COCOBOD resolves its multi-billion cedi debt to local stakeholders, the foundational productivity required to meet international offtake demands could be at risk, highlighting a critical need for improved financial management within the board.