GhanaCocoa Buyers Owe $750M, Raising Banking Concerns
Ghana's licensed cocoa buyers owe banks up to $750 million, threatening banking stability. The Licensed Cocoa Buyers Association of Ghana revealed this debt burden to Reuters, citing delayed payments from the Ghana Cocoa Board (Cocobod) and falling global prices. Buyers have taken loans to prefinance bean purchases after Cocobod's cash flow constraints diverted funds to non-core activities like road construction. Approximately 580,000 metric tons of cocoa have been delivered but remain unpaid, with 70,000 tons still in fields. Banking officials warn of potential losses amid Ghana's recovery from the 2023 Domestic Debt Exchange Programme. Cocobod has responded with salary cuts for executives and senior staff to reduce costs. This debt crisis compounds Ghana's two consecutive poor harvests and a 44% drop in cocoa futures prices this year.