ACCRA, Feb 26 – Ghana’s licensed cocoa buyers owe banks between $650 million and $750 million, according to industry estimates, increasing pressure on a financial sector still recovering from recent economic shocks.
The debt reflects growing funding gaps in Ghana’s cocoa industry, where buyers rely on bank loans to prefinance bean purchases. However, weak harvests and delayed payments have slowed cash flows across the sector. Ghana, the world’s second largest cocoa producer, has recorded two consecutive poor harvests due to crop disease and unfavorable weather conditions.
At the same time, global cocoa prices have declined amid weaker demand, leaving excess supply in both Ghana and Ivory Coast, which together account for about half of global production. As a result, buyers face reduced revenue while loan obligations continue to rise.
Samuel Adimado, president of the Licensed Cocoa Buyers Association, said total debt stands at 7 billion to 8 billion cedis owed to banks and an additional 2.2 billion to 2.5 billion cedis owed to farmers. He noted that interest costs continue to accumulate as payments remain outstanding.
Buyers have delivered about 580,000 metric tons of cocoa to Ghana Cocoa Board this season but are yet to receive full payment. Another 70,000 metric tons remain in the fields. The regulator has said it is working with the government to address funding constraints.
Meanwhile, the Ghana Association of Banks (GAB) confirmed that lenders are exposed to rising sector debt. Chief Executive of the association, John Awuah, said some loans have already been restructured and could lead to losses.
The situation comes as banks continue to recover from the 2023 domestic debt restructuring, which reduced capital buffers and triggered significant losses. The restructuring also converted cocoa financing instruments into longer term bonds with lower returns.
Authorities are now coordinating with the International Monetary Fund program to maintain financial stability while addressing liquidity pressures in the cocoa sector.
