Victus Dzah, Chief Executive Officer of the Chamber of Cocoa Marketers Ghana (CCMG), warned that COCOBOD’s repeated debts to licensed buying companies have become a predictable pattern under successive governments. The CEO described the situation as a “copybook,” noting that each administration repeats the same cycle of delayed payments, leaving buying companies to shoulder the cost.
Licensed buying companies (LBCs) accumulate interest on bank loans they take to finance cocoa purchases while waiting for COCOBOD to settle outstanding payments. Dzah said the delays have persisted across cocoa seasons, forcing LBCs to absorb additional financing costs and straining the entire cocoa supply chain.
He added that the situation has become unsustainable because interest on bank facilities continues to accrue, adding to the financial strain on the companies. “We can no longer continue with this,” Dzah said, arguing that recurring delays in settling LBCs are contributing to wider difficulties in the cocoa sector.
Dzah linked the financial strain on licensed buying companies to the challenges farmers face during the current cocoa season, explaining that disruptions within the buying system ultimately affect the ability of companies to operate effectively. He distinguished the broader history of COCOBOD’s outstanding obligations from the approximately GH¢4 billion currently being discussed, stating that the latter represents debt from the just-ended cocoa season and should not be characterised as old debt accumulated from previous seasons.
Settling the outstanding payments, Dzah said, is crucial not only for licensed buying companies but also for securing the financing needed to participate in the new cocoa season. The CCMG is therefore calling for a more sustainable financing arrangement between COCOBOD, licensed buying companies and the banking sector to prevent the cycle of outstanding payments from continuing.
