The government has released GH¢855 million to settle arrears owed to cocoa farmers after a prolonged payment crisis that left many producers unpaid for months, despite delivering their produce to licensed buying companies. The payment is part of an emergency intervention to stabilise the cocoa sector and restore confidence among farmers and buying companies.
A wide range of reforms have been announced by the government in the wake of the crisis to reorganise the sector and place the Ghana Cocoa Board (COCOBOD) on a more stable financial foundation. These reforms include a controversial reduction of more than GH¢1,000 in the producer price per bag, a move that has sparked debate across the sector.
Isaac Adongo, the chairman of the finance committee, justified the restrictions in an interview with journalists in Ghana’s parliament, calling them tough but essential measures to save a sector that has been severely strained financially for years.
“The bottom line of all that has happened is that some amounts were owed to cocoa farmers, and the government took a decision to repay those monies so that the cocoa buying companies can settle the outstanding obligations,” he said.
“I’m happy to report that this morning, the government has released 855 million cedis for that purpose. But we have also decided to introduce several reforms that are long overdue. “The cocoa sector has been under enormous strain over the years, and we have been pretending to service cocoa farmers while destroying the very vehicle we use to support them,” he added.
Rejecting assertions that the current government bears responsibility, Mr. Adongo also attributed the situation to the former New Patriotic Party (NPP) administration.
COCOBOD was financially devastated and deeply indebted when it entered 2025, he said.
