Collapse of syndicated loan triggered Cocoa payment challenges – COCOBOD CEO
6th February 2026
Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Dr Randy Abbey, has attributed the recent payment delays and arrears affecting cocoa farmers to the collapse of the long-standing syndicated loan arrangement that traditionally financed cocoa purchases.
The issue has sparked intense debate, with the Minority in Parliament and cocoa farmers raising concerns over delays in the settlement of payments owed to producers across the cocoa-growing regions.
Speaking on The Big Issue on TV3, Dr Abbey explained that prior to the introduction of syndicated loans more than three decades ago, government directly financed cocoa purchases. About 34 years ago, however, COCOBOD adopted a model under which a consortium of local and international banks provided annual syndicated loans to support cocoa buying operations—a system that functioned effectively for about 32 years.
According to him, the financing structure broke down during the 2023/2024 crop season, resulting in serious disruptions to cocoa payments. He noted that COCOBOD’s earlier defaults on cocoa bills, coupled with the Domestic Debt Exchange Programme (DDEP), significantly weakened lenders’ confidence.
“For the first time in the history of syndicated cocoa financing, the 2023/2024 season started in September, but the first tranche of the loan only arrived on December 22—nearly four months later,” Dr Abbey said.
He explained that the delay meant Ghana was unable to fully capitalise on record-high cocoa prices at the time, which ranged between $9,000 and $11,000 per tonne, depriving farmers, COCOBOD, and other stakeholders of potential benefits.
Dr Abbey stressed that the late arrival of funds severely constrained cocoa purchases and deliveries, worsening liquidity challenges across the value chain.
He added that although the syndicated facility was eventually secured during the 2023/2024 season, the funds came too late to prevent the financial strain that affected farmers and the broader cocoa sector.