Ghana Cocoa Board (COCOBOD) has announced the release of GHS 2.6 billion to settle outstanding payments for the previous cocoa season. This payment contradicts earlier claims by COCOBOD that all farmer arrears had already been cleared.
Awal Mohammed, a New Patriotic Party (NPP) communicator, highlighted this inconsistency. He noted that COCOBOD’s Head of Public Relations, Jerome K. Sam, stated in March that GHS 3.1 billion had been released to Licensed Buying Companies (LBCs) for this purpose. However, independent checks indicated farmers still had not received their money as of last month. The latest GHS 2.6 billion release therefore confirms previous claims of debt clearance were false.
This situation casts a shadow over Ghana’s critical cocoa industry. Cocoa beans are Ghana’s primary agricultural export, vital for the nation's foreign exchange earnings and impacting millions of livelihoods. The sector contributes significantly to Ghana's Gross Domestic Product (GDP). Such delays in payments can destabilize the incomes of approximately 800,000 cocoa farmers, many of whom are smallholders. This financial uncertainty can directly affect their ability to invest in their farms, potentially reducing future crop yields.
Awal Mohammed questioned whether the GHS 2.6 billion would actually reach the farmers. He stated to MyNewsGh.com, “At this point, we cannot even be certain that this new GH¢2.6 billion will actually reach the farmers.” He further expressed concern about COCOBOD's readiness for the next cocoa season. “We are barely a month away from the start of the new cocoa season, yet the previous year’s supplies remain unpaid. How can COCOBOD successfully fund and buy the upcoming main cocoa season under these conditions?”
The delayed payments force many farmers to resort to high-interest loans for survival. This erodes their profits even when payments finally arrive. The approaching cocoa season adds urgency to these concerns. Stakeholders will closely monitor the disbursement of the GHS 2.6 billion. The effectiveness of this payment will be crucial for farmer morale and the stability of future cocoa production. It also puts COCOBOD's financial management practices under scrutiny.