Ghana’s cocoa industry is teetering on the brink of collapse, with urgent calls for government intervention to address escalating financial issues affecting the Ghana Cocoa Board (COCOBOD). Kojo Oppong Nkrumah, the Minority Spokesperson on Parliament’s Economy and Development Committee, expressed grave concerns during a recent interview on TV3, highlighting the precarious situation that has arisen due to significant unpaid debts.
Since November 2025, Licensed Buying Companies (LBCs) have reportedly procured cocoa beans worth approximately GH¢10 billion from farmers, yet they have not received any payments from COCOBOD. This delay in payment is severely hampering the operations of LBCs, which are now unable to transport the cocoa they have already acquired.
“The LBCs are stuck with GH¢10 billion worth of cocoa that they cannot deliver because COCOBOD has not settled its debts,” Nkrumah stated. He emphasized that this financial gridlock has effectively halted the cocoa supply chain, preventing LBCs from returning to farms to purchase additional cocoa beans.
The situation has escalated into a liquidity crisis, with cocoa farmers facing increasing hardship as a result of the stagnation in the market. “The value chain is frozen, and as a consequence, poverty is beginning to take hold among our farmers,” he warned.
Oppong Nkrumah urged the government to prioritize financial support for COCOBOD, enabling the board to fulfill its obligations to LBCs. “The immediate step should be to secure funds that will allow COCOBOD to pay the LBCs for the GH¢10 billion owed. This will enable them to reinvest in purchasing cocoa from farmers,” he elaborated.
Furthermore, he criticized the government’s focus on long-term reforms and future price adjustments, stating that these measures fail to address the pressing liquidity issues currently afflicting the industry. “If the government merely announces an increase in producer prices without resolving the immediate financial crisis, it won’t solve the problem at hand,” he cautioned.
The call for action comes amid a backdrop of increasing concern regarding the sustainability of Ghana’s cocoa value chain, which is crucial for the nation’s economy.
