Ghana’s cocoa crisis deepens as buyers owe banks $750 Million

By Dominic Wabwireh with other agencies

Ghana’s licensed cocoa buyers are staggering under up to $750 million in debt to banks, the Licensed Cocoa Buyers Association revealed Thursday, as delayed payments from regulator Cocobod and falling global prices squeeze the sector supplying half the world’s cocoa.

Association President Samuel Adimado told Reuters buyers owe banks 7-8 billion cedis ($650-750 million) and farmers an additional $205-234 million, with “interest piling up.”

Buyers have delivered 580,000 tonnes of beans this season but await full payment, while another 70,000 tonnes remain in fields.

Root causes

The crisis follows two poor harvests from disease and bad weather, plus a sharp global price plunge from $12,000 per tonne in 2024 to roughly $4,000 now.

Adimado said Cocobod diverted funds to non-core activities like road construction, forcing buyers to borrow for farmer payments.

Emergency government response

Finance Minister Cassiel Ato Forson announced a nearly 30 percent farmgate price cut to $3,580 per tonne—aligning with international markets—to inject “immediate liquidity.”

The government will seek parliamentary approval to extend Cocobod debt repayment and reform financing through local debt markets, ensuring farmers receive at least 70 percent of export prices.

The cocoa sector supports one million livelihoods.