COCOBOD has begun paying Licensed Buying Companies to help settle debts owed to cocoa farmers. The move comes after months of payment delays that left many farmers unpaid.
These delays raised fears about hardship for farmers and risks to the cocoa value chain. The Minority in Parliament said COCOBOD owes LBCs over GH¢10 billion for cocoa already taken. COCOBOD explained the problem was caused by difficulties in securing syndicated financing. As a result, LBCs had to pre-finance cocoa purchases while awaiting reimbursement.
The Board says it has paid billions of cedis since November to ease the situation. COCOBOD also says it is working on a more sustainable financing system for the future.
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