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The government has allocated GH¢855 million to clear outstanding debts to cocoa farmers following a lengthy payment issue that caused numerous producers to remain unpaid for months, even after supplying their harvest to licensed buying companies.
The payment is a component of an urgent action to stabilize the cocoa industry and rebuild trust between farmers and purchasing companies.
Following the crisis, the government has unveiled a comprehensive set of reforms designed to restructure the sector and establish a more sustainable financial foundation for the Ghana Cocoa Board (COCOBOD).
These changes involve a contentious cut of over GH¢1,000 in the price producers receive per bag, a decision that has ignited discussion throughout the industry.
While addressing reporters in Ghana’s Parliament, Isaac Adongo, Chair of the Finance Committee, supported the measures, calling them tough but essential actions to save a sector he claimed has faced significant financial pressure 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 a number of 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.”
Rejecting assertions that the current government bears responsibility, Mr. Adongo also attributed the situation to the former New Patriotic Party (NPP) administration.
He claims that COCOBOD was severely indebted and in financial trouble going into 2025.
“COCOBOD entered 2025 with about GH¢17.8 billion in loans, plus significant operational liabilities. When you add everything together, the exposure was over GH¢60 billion. That vehicle could not be sustainable and had to be addressed,” he stated.
Speaking at a news conference on Thursday, February 19, 2026, Isaac Adongo, a member of parliament for Bolgatanga Central and chairman of the Finance Committee of Parliament, pointed out a substantial financial deficit in the Board’s accounts.
“COCOBOD requires over 30 billion cedis in working capital for it to survive, not the 60 billion left behind. If you look at the accounts, you realise that there is a big hole in there,” Adongo said.
In the meantime, COCOBOD announced that it might save approximately GH¢5 million each month due to salary cuts for its executive management and senior personnel. Executives will experience a 20% salary reduction, whereas senior employees will see a 10% decrease in their pay. The cuts, as stated by COCOBOD, are already in effect and will persist throughout the entire 2025/2026 crop year.
In an attempt to tidy up COCOBOD’s financial records, the government is pursuing parliamentary consent to transform a historical debt of GH¢5.8 billion owed to the Bank of Ghana and the Ministry of Finance into long-term liabilities. Moreover, road-associated debts totaling GH¢4.35 billion will be shifted from COCOBOD to the Ministry of Roads and Highways as well as the Ministry of Finance.
The advancement occurs alongside increasing pressures in the cocoa industry, such as escalating operational expenses, funding challenges, worries for farmers’ well-being, and heightened public examination of cocoa prices and COCOBOD’s financial situation.
Source: Ghanatodayonline.com
