Gov’t hopes to clear cocoa farmer arrears within 2–3 weeks – Otokunor

A senior presidential official says the government is hopeful that Ghana’s cocoa farmer payment crisis will be resolved within the next two to three weeks, as efforts intensify to clear outstanding arrears owed through Licensed Buying Companies (LBCs).

Dr Peter Boamah Otokunor, Director of Presidential Initiatives in Agriculture and Agribusiness, projected in an interview with JoyNews’ Gemma Appiah after touring parts of the Western Region, where delayed payments to cocoa farmers emerged as one of the most pressing concerns raised during his engagements.

“We are hopeful that in the next two or three weeks, we’ll be able to absorb all those outstanding debts owed to the farmers,” Dr Otokunor said. “Then the rest of the season, the LBCs can use their margins to buy at the new price.”

The comments come amid growing concern within the cocoa sector over delays in payments to farmers, a situation that has disrupted buying activities in several cocoa-growing communities.

Dr Otokunor explained that the total debt owed to LBCs stands at about $750 million, equivalent to between GH¢7.5 billion and GH¢8 billion. According to him, the government has already released roughly GH¢4 billion within two weeks following a directive from the President to the Finance Minister to address the crisis.

Despite the disbursements, challenges remain on the ground. Industry figures indicate that as of early March 2026, LBCs collectively owed local banks between GH¢7 billion and GH¢8 billion in pre-financing loans, with interest rates reportedly reaching as high as 29.8 per cent.

The situation has raised concerns that some of the funds released by the Ghana Cocoa Board (COCOBOD) could be used to service bank debts rather than directly paying farmers who have already supplied their beans.

The payment disruptions were earlier acknowledged by COCOBOD’s Chief Executive Officer, Dr Randy Abbey, who disclosed on February 6 that about 50,000 tonnes of cocoa remained with farmers without buyers.

At the time, he noted that the beans had become “too expensive” for some international traders at prevailing prices.

The issue has also drawn scrutiny from the Minority in Parliament, which has argued that the pace of disbursements may delay full repayment of COCOBOD’s debts to LBCs. The Minority has called on the government to ensure transparency in how cocoa revenues are distributed across the sector.

However, Dr Otokunor insists the government remains committed to clearing all outstanding payments to farmers.

He said resolving the arrears quickly is critical to restoring confidence in Ghana’s cocoa marketing system and ensuring that farmers are able to continue selling their produce for the remainder of the season.

MyJoyOnline