COCOBOD choking with debt, set to pay GH₵5.37 billion in 2025 – Agriculture Minister
The Ghana Cocoa Board (COCOBOD) is currently grappling with significant financial challenges, with a projected debt repayment of GH₵5.37 billion in 2025. This situation has been exacerbated by a series of financial setbacks in recent years.
In 2022, COCOBOD reported a substantial loss of GH₵4.2 billion. Although the organization achieved a profit of GH₵2.3 billion in 2023, this turnaround was primarily due to a net foreign exchange gain of GH₵1.7 billion. Despite increased revenue from cocoa bean sales, COCOBOD faced escalating direct costs, administrative expenses, and finance costs, leading to ongoing financial strain.
To address its mounting debt, COCOBOD initiated a debt securities exchange program in July 2023, inviting holders of short-term debt securities (Cocoa Bills) to exchange them for longer-term bonds. This program aimed to restructure approximately GH₵7.93 billion of debt.
Additionally, COCOBOD has faced challenges in securing international syndicated loans, a traditional source of funding since 1992. In August 2024, the organization announced a shift towards self-financing for the 2024/2025 cocoa crop season, aiming to save an estimated $150 million in interest payments.
Despite these efforts, COCOBOD’s financial difficulties persist, with significant debts owed to local banks and contractors. The organization has expressed commitment to repaying all debts and is exploring various strategies to achieve financial stability.
