The Ghana Cocoa Board has acknowledged that it still owes licensed cocoa buying companies money from the previous season as the companies warn that unpaid balances are making it harder to finance purchases for the next crop.
The Chamber of Cocoa Marketers Ghana says the outstanding amount is nearly GH¢4 billion. COCOBOD has not confirmed that figure in the reports reviewed, but its Head of Public Affairs, Jerome Kwaku Sam, said the board has outstanding obligations to the companies.
Licensed buying companies purchase cocoa from farmers on COCOBOD’s behalf and submit Cocoa Takeover Receipts for payment. The Chamber says companies are still servicing loans used for earlier purchases while trying to secure fresh credit for the coming season.
Victus Dzah, chief executive of the Chamber, told MyJoyOnline that some companies were borrowing at interest rates of up to 40 per cent while awaiting payment. The Chamber says the unpaid balances could limit their ability to return to cocoa-growing areas and buy beans when the new season opens.
COCOBOD disputes the suggestion that the outstanding balances show it cannot meet its obligations. Sam told Citi News on 15 September that unpaid amounts can remain after a season closes and said the board had prioritised payments to cocoa farmers before settling amounts due to licensed buying companies.
He also linked the situation partly to COCOBOD’s transition from its previous financing model to a new funding arrangement.
COCOBOD says it plans to meet the Chamber to discuss the outstanding payments before the new season opens. As of 16 September, the meeting date had not been fixed.