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Ghana

Cocoa Board’s funding squeeze exposes serial mismanagement

Years of hidden losses and rising arrears have left buyers and farmers struggling as state body raises $1.4 billion on the domestic markets

A liquidity crunch in Ghana’s cocoa sector has forced the Ghana Cocoa Board (Cocobod) and the Ministry of Finance to seek domestic bond financing to fund cocoa purchases from farmers. Cocobod delayed the start of the cocoa season to 25 September after Licensed Buying Companies (LBCs) protested over about 4 billion cedis (US$340 million) in unpaid debts, warning they could no longer absorb months of delayed repayments and threatened to halt purchases unless the arrears were cleared.

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