{"id":114217,"date":"2026-02-05T17:04:14","date_gmt":"2026-02-05T17:04:14","guid":{"rendered":"https:\/\/sotnews.agency\/?p=114217"},"modified":"2026-02-05T17:04:14","modified_gmt":"2026-02-05T17:04:14","slug":"licensed-cocoa-buyers-association-urges-funding-pricing-and-policy-reforms-to-stabilise-ghanas-cocoa-sector","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=114217","title":{"rendered":"Licensed Cocoa Buyers Association urges funding, pricing and policy reforms to stabilise Ghana\u2019s cocoa sector"},"content":{"rendered":"
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The Licensed Cocoa Buyers Association of Ghana (LICOBAG) has proposed a series of funding, pricing, and policy reforms aimed at restoring stability and professionalism to the country\u2019s cocoa industry, warning that without urgent intervention, the sector risks prolonged decline.<\/p>\n

Speaking at a press conference in Accra on Thursday, February 5, Executive Secretary Victus Dzah described the cocoa sector as struggling under the weight of funding constraints, weak sales strategy, and governance lapses.<\/p>\n

\u201cIf these measures are carefully considered and implemented, the cocoa sector can be restored to its glory days,\u201d he said.<\/p>\n

Central to LICOBAG\u2019s recommendations is an urgent review of the funding framework for cocoa purchases.<\/p>\n

\u201cWe suggest a review of the current funding model to allow for a hybrid arrangement, combining the old syndicated facility, both local and international, with the current structure, to enable real-time payment for cocoa purchased and delivered to port by LBCs,\u201d Mr Dzah stated.<\/p>\n

To prevent further attrition among Licensed Buying Companies, the Association proposed introducing a limited seed-fund regime to help struggling operators remain afloat.<\/p>\n

LICOBAG also called on government to secure emergency financing to pay for cocoa already produced.<\/p>\n

\u201cGovernment must, as a matter of urgency, secure a facility to pay for an estimated 300,000 metric tonnes of cocoa in a phased manner between now and September,\u201d he said, warning that delays could deepen distress across the value chain.<\/p>\n

On financial discipline, Mr Dzah stressed that funds raised for cocoa purchases must be protected from diversion.<\/p>\n

\u201cFunds secured for cocoa purchases must be ring-fenced and used strictly for that purpose, as the core business of COCOBOD is to purchase cocoa beans produced by farmers,\u201d he said.<\/p>\n

The Association also called for an immediate determination of the farmgate price to reduce uncertainty among farmers, buyers, and other stakeholders.<\/p>\n

\u201cA clear determination on the farmgate price is critical to allaying the apprehension of actors across the value chain,\u201d Mr Dzah noted.<\/p>\n

Regarding trade and marketing, LICOBAG urged COCOBOD, the Cocoa Marketing Company (CMC), and traders to adopt a more proactive sales strategy, supported by stronger oversight.<\/p>\n

\u201cCMC, COCOBOD and traders must be more proactive in their sales strategy to yield optimum results, while COCOBOD must increase supervisory oversight of the trading room,\u201d he said.<\/p>\n

Highlighting the need to rebuild professionalism within the sector, the Association called for capacity development and improved staff security.<\/p>\n

\u201cThere is the need to develop the professional capacity of CMC cocoa traders and restore a credible succession plan that guarantees security of tenure, improves morale and enhances professionalism,\u201d Mr Dzah said.<\/p>\n

LICOBAG further called for a fundamental reset of cocoa sector reforms.<\/p>\n

\u201cSerious efforts must be made to revamp the cocoa industry beyond rhetoric and theatrics,\u201d he said, urging COCOBOD to divest from non-core activities and refocus on effective extension services for farmers.<\/p>\n

The Association also emphasised stronger institutional collaboration and improved communication between LICOBAG and COCOBOD.<\/p>\n

\u201cGovernment must make deliberate efforts to restore COCOBOD to its past glory by speeding up the passage of the new Act on pricing mechanisms,\u201d Mr Dzah concluded.<\/p>\n<\/p>\n<\/div>\n

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The Licensed Cocoa Buyers Association of Ghana (LICOBAG) has put forward a raft of policy and funding reforms aimed at restoring stability and professionalism to Ghana\u2019s cocoa sector, warning that without decisive action, the industry risks prolonged decline.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[12,2582,1221,2208,16452,1883,117,10,9],"tags":[],"class_list":["post-114217","post","type-post","status-publish","format-standard","hentry","category-business","category-cocoa","category-cocobod","category-hp-business-2","category-licensed-cocoa-buyers-association-of-ghana","category-national","category-news","category-politics","category-popular"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/114217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=114217"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/114217\/revisions"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=114217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=114217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=114217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}