Randy Abbey with other stakeholders at the launch
Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Randy Abbey, has launched the Chamber of Cocoa Marketers calling for a new cocoa financing model to provide adequate liquidity for cocoa purchases while creating opportunities for local processors to access raw materials and increase value addition in the industry.
Speaking at the launch of the Chamber of Cocoa Marketers yesterday in Accra, he said the current financing structure, which requires large portions of cocoa production to be collateralised for funding, limits the ability of local companies to participate fully in cocoa processing and undermines efforts to maximise revenue from the sector.
Mr. Abbey described the formation of the Chamber as an important step in strengthening collaboration among stakeholders in the cocoa sector.
“For 79 years, cocoa has served as the backbone of the Ghanaian economy, providing the necessary funding for the growth, resilience and robustness of the sector. However, the true strength of this industry does not reside within a single institution; it thrives within a powerful interconnected ecosystem,” he said.
The COCOBOD Chief Executive explained that while Ghana had the potential to generate far greater revenue from cocoa, achieving that objective required reforms in financing, pricing and value addition.
Mr. Abbey questioned how the country could increase local processing capacity if domestic processors were unable to access enough cocoa beans because of existing funding arrangements.
“If you have a situation where your financing model does not allow local processing companies to sign contracts and have those contracts accepted as part of the collateral for funding, how are you able to get local processors to add value?” he asked.
He said COCOBOD was introducing a new financing mechanism that would support cocoa purchases throughout the year and help eliminate delays in payments to Licensed Buying Companies (LBCs).
According to him, the new arrangement would also improve efficiency in cocoa purchasing, reduce indebtedness to banks and strengthen profitability across the value chain.
Mr. Abbey also highlighted the need for a new cocoa pricing mechanism that would allow all stakeholders, including farmers, to benefit when international cocoa prices increase while sharing the impact when prices decline.
Mr. Abbey further urged members of the Chamber of Cocoa Marketers to actively participate in consultations on the new cocoa legislation and regulations, stressing that the law was designed to promote prudent financial management, accountability and efficiency within the sector.
Interim President of the Chamber of Cocoa Marketers, Samuel Adimado, for his part described the launch as a historic moment that marked the transformation of the Licensed Cocoa Buyers Association of Ghana (LICOBAG) into a more structured institution capable of influencing policy and supporting reforms in the cocoa sector.
He said the transition was necessary due to changing dynamics within the industry, including challenges relating to funding, pricing, taxation, production and the enactment of the new Cocoa Bill.
“Transitioning into a standard-driven and policy-influential institution capable of shaping reforms is a strategic response to emerging challenges rather than remaining a reactive advocacy association,” he stated.
Mr. Adimado also expressed appreciation to stakeholders for supporting the establishment of the chamber and called for continued collaboration to enable it play its rightful role in Ghana’s cocoa value chain.
By Ebenezer K. Amponsah