Ghana cocoa buyers banned from buying beans on credit

Ghana's cocoa regulator has barred Licensed Buying Companies from buying cocoa beans from farmers on credit, warning that companies that breach the directive could lose their licences.

The Ghana Cocoa Board (COCOBOD) says the measure is part of efforts to improve cash flow and reduce delays in payments across the cocoa supply chain.

COCOBOD chief executive Randy Abbey announced the directive at the launch of the Chamber of Cocoa Marketers.

He said the regulator had formally written to licensed buyers instructing them to stop the practice.

No licences have been withdrawn so far, he said, but companies found buying cocoa on credit again could have their licences revoked.

Mr Abbey also urged farmers not to hand over their cocoa beans to purchasing clerks without receiving payment.

New financing model

The directive comes as COCOBOD prepares to introduce a new system for financing cocoa purchases.

The new funding model is expected to take effect from the 2026/27 cocoa season and is intended to ensure that licensed buyers have enough money to purchase cocoa throughout the year.

COCOBOD says the system should also reduce delays in reimbursing buyers after they take over cocoa from farmers.

Mr Abbey said faster payments would allow licensed buyers to purchase cocoa more quickly, reduce their debts to banks and improve the profitability of cocoa marketing.

The financing changes are also intended to increase the amount of cocoa processed locally.

Under the existing system, much of Ghana's cocoa crop has had to be used as collateral to secure financing, restricting access to raw beans for local processors.

COCOBOD says the new arrangement should free up financing for cocoa purchases while helping Ghana retain more of the value generated by its cocoa industry.

Farmers to receive 70% of cocoa value

The changes are part of wider reforms contained in the proposed Ghana Cocoa Board Bill 2026.

Mr Abbey said the new legislation would guarantee cocoa farmers 70% of the gross free-on-board value of cocoa.

It would also allow producer prices to be adjusted during the season in response to changes in international market conditions.

COCOBOD says the reforms are intended to improve the financial sustainability of the cocoa sector, strengthen the supply chain and provide more sustainable returns for farmers.

Mr Abbey described the changes as the most significant reforms to Ghana's cocoa industry since 1984.

He said they were intended to "reset" the sector for growth and greater domestic processing.