Ghana, the world’s second-largest cocoa producer, is facing a serious liquidity crisis in its cocoa sector, raising concerns about contract reliability, farmer welfare, and foreign exchange stability.
On Wednesday, February 11, 2026, President John Dramani Mahama convened an emergency Cabinet meeting to address mounting financial strain within the Ghana Cocoa Board (COCOBOD). The meeting comes as Licensed Buying Companies (LBCs) report significant payment arrears and international buyers reassess their exposure to Ghana’s cocoa market.
LBCs say they are owed approximately $185 million (GH¢2.04 billion) by COCOBOD, with some reporting unpaid balances spanning two crop seasons. These delays have disrupted the traditional cocoa purchasing cycle.
Under normal conditions, LBCs secure short-term bank financing to purchase cocoa from farmers, expecting reimbursement from COCOBOD within a few months. However, during the 2023/24 season, reimbursement delays stretched up to nine months, exhausting credit lines and tightening liquidity across the domestic supply chain.
“From November till now, I can’t sleep,” says one purchasing clerk with 20 years of experience. “I have taken 250 bags of cocoa from farmers, and they are always at my doorstep demanding their money.
For nearly three decades, COCOBOD relied on a syndicated loan facility backed by international banks to pre-finance cocoa purchases. The arrangement allowed the board to pay farmers promptly upon delivery while securing export commitments.
In 2024, Ghana stepped away from this model to reduce borrowing costs. However, international lenders have declined to participate in financing the 2025/2026 season. This follows COCOBOD’s failure to honor delivery commitments on over 333,000 tonnes of cocoa.
An international trade consultant familiar with the West African market described the reputational risk:
“Credibility is the only currency that matters in global commodities. Once you fail to deliver on a forward contract, you aren’t just losing money; you are losing the future market.”
The withdrawal of lender support signals diminished confidence in Ghana’s cocoa marketing framework.
The government’s alternative strategy involved shifting more financing responsibility to international buyers, who were expected to pre-finance up to 80% of purchases. The approach coincided with a period of elevated global cocoa prices, which peaked near $12,000 per tonne.
As prices corrected to around $4,000 per tonne, buyer appetite weakened.
Meanwhile, Ghana’s fixed farmgate price of GH¢51,660 ($4,696) per tonne has remained above prevailing international levels, leaving an estimated 50,000 metric tonnes of cocoa unsold at ports.
The pricing gap has complicated export flows and raised questions about the sustainability of the current producer-price structure.
The liquidity crisis has intensified domestic political debate. The Minority Caucus in Parliament has accused the government of failing to honor a campaign promise of GH¢6,000 per bag, later adjusted to GH¢3,625.
Isaac Yaw Opoku, Ranking Member on Food and Agriculture, stated:
“Outrageous promises were made in opposition, but the reality in government is a default on even reduced payments,”
“Farmers are unable to feed families or buy medicine while the top hierarchy is locked in a power struggle.”
Reports of internal tensions between COCOBOD and the Cocoa Marketing Board have added to concerns about administrative coordination at a critical time.
Cocoa accounts for nearly 9% of Ghana’s GDP and approximately 15% of export earnings, making it a key source of foreign exchange. The Bank of Ghana relies on cocoa export proceeds to support reserves and currency stability.
Last season, an estimated 160,000 tonnes of cocoa were smuggled into neighboring Côte d’Ivoire and Togo, underscoring the risks when domestic price and payment systems falter. Such leakages also weaken the Living Income Differential (LID) arrangement between Ghana and Côte d’Ivoire.
For global chocolate manufacturers, Ghana’s supply uncertainty increases reliance on alternative origins such as Ecuador. Although Ghana’s production is forecast to recover to 750,000 metric tonnes, financing constraints could limit the country’s ability to fully capitalize on output gains.
Industry groups have called for an immediate $200 million liquidity injection to enable the purchase of approximately 300,000 tonnes of cocoa and restore market function.
While January 2026 inflation slowed to 3.8%, input costs for farmers remain elevated, placing additional strain on rural households.
The outcome of the Cabinet deliberations will likely determine whether Ghana undertakes structural reform of COCOBOD’s financing model or pursues short-term liquidity support to stabilize the current season.