The Acting CEO of the Ghana Cocoa Board (Cocobod), Dr. Randy Anerley Abbey, has warned that local Licensed Buying Companies (LBCs) face collapse unless urgent financial support is provided.
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Speaking on Joy News’ PM Express Business Edition, Dr. Abbey revealed that Cocobod has skipped the syndicated loan for the 2025/26 cocoa season. This move has triggered a liquidity crisis among indigenous cocoa buyers who traditionally rely on seed money from Cocobod.
“Something is happening with the LBCs, especially the indigenous ones. We are not doing the syndicated loan for 2025/26,” he told host George Wiafe.
Without the syndicated loan, Cocobod cannot provide the seed money that enables LBCs to purchase cocoa beans during the harvest season. “This seed money is what is given to the LBCs to go and purchase the beans,” he explained. “But for 2024/25, the loan was low. Now, there’s no seed fund.”
While skipping the loan might reduce Cocobod’s financing costs, Dr. Abbey said the consequences are severe for local firms. “Cocobod would have needed GH¢3 to GH¢3.5 billion if we went for the loan. But due to our financial challenges, even banks now demand 8% to 10% on the dollar,” he said.
Indigenous Cocoa Buyers Struggling
The impact is already being felt. Many local LBCs are unable to operate due to a lack of funds. In response, Cocobod has reached out to the Bank of Ghana for help. “We engaged the central bank. They asked for a follow-up letter, and I’ve done that,” Dr. Abbey confirmed.
He proposed using part of the banks’ mandatory reserves with the Bank of Ghana to support cocoa purchases. Banks deposit 25% of customer deposits with the central bank. That money is idle,” he noted. “Can we allocate 2% or 3% of that to support indigenous LBCs?”
He emphasized that the support should be strictly limited to cocoa purchases to avoid misuse. “We can restrict it, no oil, tin tomatoes, or anything else. Only cocoa.”
A Race Against Time
Dr. Abbey expressed hope that the Bank of Ghana will respond positively. Otherwise, he fears many local LBCs could collapse under financial pressure. “If there’s no support, I fear most indigenous LBCs will go extinct,” he said.
His comments follow Cocobod’s recent shift away from syndicated loans. The board has now adopted a 60-40 model with cocoa buyers for the 2025/26 season. This change, Dr. Abbey added, pushed him to travel to Europe and North America to secure direct support from international buyers.
