Ghana’s cocoa buyers owe banks up to $750 million amid sector strain

Ghana’s licensed cocoa buyers owe banks up to $750 million as financial pressures intensify across the country’s cocoa sector, raising concerns about broader banking stability.

The disclosure was made by the Licensed Cocoa Buyers Association of Ghana, according to a Reuters report published on Wednesday.

The development highlights deepening liquidity challenges affecting cocoa buyers, farmers, regulators, and financial institutions, with mounting debts linked to delayed payments, weak harvests, and falling global prices.

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**What they are saying **

The Licensed Cocoa Buyers Association of Ghana says its members are grappling with significant debt burdens owed to both banks and farmers. The association attributes the situation largely to cash flow constraints at the Ghana Cocoa Board (Cocobod), which have delayed reimbursements to buyers.

• _“Samuel Adimado, president of the Licensed Cocoa Buyers Association of Ghana, said debts were accumulating because Cocobod, the country’s cocoa regulator, has been spending more on non-core activities like road construction. As a result, buyers have taken out loans from banks to prefinance bean purchases. _
• “In all, buyers owe banks around 7 billion to 8 billion cedis ($650 million to $750 million), and 2.2 billion to 2.5 billion cedis to farmers, he told Reuters,” the report read in part.

According to Samuel Adimado, licensed buyers have delivered about 580,000 metric tons of cocoa to Cocobod this season but have yet to be paid. He added that approximately 70,000 metric tons remain in the fields, and a recently reduced producer price is expected to apply to about 100,000 metric tons.

Banking system under strain

The growing exposure of banks to cocoa sector debts is adding pressure to Ghana’s financial system. The Ghana Association of Banks confirmed that lenders across the cocoa value chain are exposed, noting that some loans have already been restructured and that further losses may occur.

• Ghana’s banks are still recovering from the 2023 Domestic Debt Exchange Programme (DDEP), which restructured nearly all domestic bonds and weakened capital buffers.
• Under the DDEP, Cocobod’s short-term cocoa bills used to finance annual bean purchases were converted into longer-dated bonds with lower coupon rates.
• Ghana, the world’s second-largest cocoa producer after Ivory Coast, has recorded two consecutive poor harvests due to crop disease and adverse weather.

London cocoa futures have fallen to near a three-year low, worsening the sector’s revenue outlook.

While banking officials maintain that the financial system remains resilient, they caution that careful management will be required to sustain stability and ensure compliance with Ghana’s International Monetary Fund programme as cocoa-related debts continue to mount.

**More insights **

The executive management and senior staff of the Ghana Cocoa Board have recently taken salary cuts in response to liquidity challenges within the cocoa sector. The move was confirmed in a press release issued by the Chief Executive of COCOBOD on Monday, February 16, 2026.

• “The Executive Management has taken a twenty (20) per cent cut, while the Senior Staff have taken a ten (10) per cent reduction in their respective salaries.”

The statement added that the salary reductions form part of broader cost-saving measures.

These measures include procurement savings and a staff rationalisation exercise aimed at reducing overall expenditure.

The board said the steps are intended to align spending with available revenue for the remainder of the 2025/26 cocoa crop year and maintain financial stability amid declining prices and market pressures.

**What you should know **

Global cocoa prices have experienced sharp volatility in recent months, significantly affecting revenues and liquidity across producing countries.

• The downturn has compounded existing structural and financing challenges within Ghana’s cocoa industry.
• In 2025, cocoa futures fell by more than 44%, sliding from above $10,950 to $6,065 per metric ton.
• A bullish correction in December saw prices rebound from $5,456 to $6,065, preventing the full-year decline from exceeding 50%.

Cocoa prices fell below $4,000 per metric ton on February 10, 2026, marking a month-to-date loss of over 10% and extending concerns after January’s 29% decline.

In Nigeria, the fifth-largest cocoa producer, December cocoa exports rose 17% year-on-year to 54,790 metric tons, reflecting strong production amid regional oversupply.

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