Cocobod In Liquidity Crisis, as Payment Assurances Fail To Calm Cocoa Sector
By Prince Ahenkorah
The Ghana Cocoa Board (COCOBOD) is embroiled in a deepening financial and credibility crisis, with its CEO Dr. Randy Abbey publicly clashing with critics over repeated assurances to farmers while failing to clear months-old payment arrears.
A stark admission from Abbey reveals a liquidity squeeze so severe that the board is dependent on international buyers to pre-finance purchases, undermining its bargaining power and exposing systemic vulnerability.
At a tense Accra briefing, Abbey confirmed the board is working with the Ministry of Finance to settle debts but attributed delays to a “syndicated funding” holdup. More critically, he disclosed a unsustainable pricing model:
Ghana pays farmers over US$5,000 per tonne while global prices hover just above US$4,000 a subsidy costing the state over $1,000 per tonne and forcing some Licensed Buying Companies (LBCs) to source cheaper beans from neighbouring countries.
The CEO’s assurances were immediately dismissed as “uninspiring” by former presidential staffer Dennis Miracles Aboagye, who highlighted a troubling timeline. “This crisis started months ago, and we are still hearing assurances instead of seeing decisive action,” Aboagye stated, capturing the growing impatience in cocoa-growing communities now threatening demonstrations.
The Minority in Parliament has escalated pressure, demanding immediate settlement of over GH¢10 billion owed to farmers and LBCs. This political offensive underscores the sector’s instability and risks eroding the core support base of the governing NDC in key rural constituencies.
Amid the payment crisis, Abbey outlined a contentious strategic shift. He announced COCOBOD is reviewing its financing model to move away from “collateralization of the raw bean,” which he claims ties the board’s hands and stifles local value addition.
“Any financing structure that restricts COCOBOD’s ability to prioritise value addition will be rejected,” he declared. However, critics question how this realignment can proceed without first stabilising the broken purchase system.
The CEO also mounted a defensive regarding board expenditures, revealing that upon taking office in 2025, he found no official vehicle assigned to him.
Using internally generated funds, management procured 20 pickup trucks for operational staff a move he insisted was essential for supervision, not a luxury. This justification follows public scrutiny over procurement priorities while farmers remain unpaid.
One sliver of positive news emerged on COCOBOD’s balance sheet. Abbey reported successful completion of a debt rationalisation under the Domestic Debt Exchange Programme, slashing obligations from GH¢26 billion to GH¢4.5 billion. He framed this as a “critical step toward restoring financial stability,” though its immediate impact on farmer liquidity appears negligible.
This clash reveals more than a simple payment delay; it exposes fundamental fractures in Ghana’s cocoa governance. Abbey’s admission of buyer-dependent pre-financing highlights a severe weakening of COCOBOD’s fiscal autonomy.
The $1,000-per-tonne price subsidy is a ticking time bomb, unsustainable without either a dramatic global price surge or a politically toxic reduction in farmer incomes.
The board’s attempt to pivot towards value addition is strategically sound but practically precarious. Attempting to redesign financing models while firefighting a liquidity crisis and farmer revolts risks achieving neither goal.
The government faces a dual challenge: it must inject urgent liquidity to pacify the countryside while simultaneously restructuring a century-old export model that is bleeding cash.
The coming weeks will be critical. If payments are not swiftly delivered, farmer protests could escalate, disrupting the impending light crop season and further emboldening political opposition. COCOBOD’s promises are now a currency of diminishing value—only tangible cash deliveries will restore calm to Ghana’s troubled cocoa heartlands.