By Ebenezer De-Gaulle
An expansive research and factchecking by the TMG Research and Investigative Desk (TMG-RID) have shed light on the systemic financial decay paralyzing Ghana’s cocoa sector, revealing a staggering GH¢32.91 billion debt that has left thousands of farmers without payment.
The crisis, described by industry experts as a “liquidity trap,” reached a boiling point this week as the Licensed Cocoa Buyers Association of Ghana (LICOBAG) confirmed that COCOBOD owes Licensed Buying Companies (LBCs) approximately GH¢10.1 billion ($909 million). This debt has effectively frozen the domestic buying market, leaving LBCs unable to reimburse farmers for beans delivered over the last two seasons.
The TMG-RID Research Findings
Following a COCBOD refusal to respond to the formal Right to Information (RTI) request filed by TMG-RID for six years of COCOBOD financial records, the desk has dip deeply and have identified four “economic sinkholes” driving the insolvency:
- The “Cocoa Road” Debt Trap: COCOBOD inherited road construction contracts valued at GH¢26 billion. In some instances, contracts worth $1.2 billion were awarded against an annual budget of only GH¢430 million, creating a repayment cycle that could last 47 years.
- Failed Forward Sales: In the 2023/24 season, COCOBOD defaulted on contracts for 333,760 tonnes of cocoa sold at $2,600 per tonne. As global prices surged past $10,000, the failure to deliver cost Ghana nearly $1 billion in potential revenue.
- Procurement Inefficiencies: The investigation highlighted “avoidable” expenditures, including $48 million spent annually on new jute sacks despite having massive uncleared existing stocks.
- The Collapse of the Syndicated Loan: For the first time in 30 years, the traditional $1.5 billion syndicated loan model has stalled due to a “loss of confidence” from international lenders, forcing the board to rely on expensive, ad-hoc buyer-linked financing.
Impact on the Ground
The human cost of this financial meltdown is stark. In cocoa-growing regions, farmers report being unable to pay school fees or hire labour, with some turning to illegal mining (galamsey) to survive. An estimated 160,000 tonnes of cocoa were smuggled into neighbouring Côte d’Ivoire and Togo last season as farmers sought immediate cash payments.
Government Response
In response to the deepening crisis, President John Dramani Mahama convened an emergency Cabinet meeting on February 11, 2026. The Ministry of Finance is expected to outline a “Cocoa Rescue Plan” involving an immediate cash injection to settle outstanding farmer arrears and a radical restructuring of COCOBOD’s funding model.
The Desk will keep fighting (investigating) with or without the RIT request made to COCOBOD.