Ghana Cocoa Board warns against credit purchases and clarifies new bill

The Ghana Cocoa Board (COCOBOD) has issued a directive to Licensed Buying Companies (LBCs) prohibiting the purchase of cocoa beans from farmers on credit. COCOBOD CEO Dr. Randy Abbey stated that repeat offenders face the potential revocation of their operating licenses. The measure aims to improve liquidity, reduce LBC indebtedness to banks, and ensure farmers receive immediate payment for their produce.

Dr. Abbey also addressed concerns regarding the proposed Cocoa Board Bill 2026, dismissing claims that the legislation would ban intercropping. He clarified that the bill is designed to protect cocoa farms from destruction caused by illegal mining, logging, and real estate development. The legislation would require authorization before cocoa trees can be felled or damaged, except as part of approved rehabilitation programs.

To support the sector, a new financing model is expected to be introduced for the 2026/27 crop season to provide sufficient funding for procurement and minimize payment delays.