The Acting CEO of the Ghana Cocoa Board (Cocobod) has revealed that indigenous Licensed Buying Companies (LBCs) face possible extinction unless urgent financing support is provided.

Dr Randy Anerley Abbey disclosed that Cocobod has not secured a syndicated loan for the 2025/26 crop season, and that decision has triggered a financing crisis among local cocoa buyers.

“Something is happening with the LBCs, especially the indigenous ones, which has to do with the fact that we are not doing the syndicated loan. We are not doing 2025/26,” Dr. Abbey told George Wiafe on Joy News’ PM Express Business Edition.

He explained that the absence of the annual cocoa syndicated loan has created a liquidity vacuum, particularly for local companies that traditionally rely on Cocobod’s seed money to buy cocoa beans during the harvest season.

“Under the syndicated loan, Cocobod creates what he calls the seed money. And this seed money is what is given to the LBCs to go and purchase the bean,” he said.

“But 2024/25 low syndicated loans, so no seed fund.”

Dr. Abbey noted that while bypassing the syndicated loan might save Cocobod some financing costs, the decision has had devastating consequences for smaller players.https://www.youtube.com/embed/Y_afP9gzTtc?si=tzSkleGGmgQgOm-E

“Although it is saving Cocobod in terms of the financing cost…if we were to go for a syndicated loan, Cocobod will be looking at maybe GH¢3 billion or GH¢3.5 billion. And because of the nature of our finances, you even have banks asking for 8% to 10% on $1.”

The impact, he warned, is already being felt across the cocoa purchasing chain.

“Now the indigenous LBCs are unable to operate because there’s no seed money.”

In response to the looming crisis, Cocobod has engaged the Bank of Ghana for possible intervention using the Cash Reserve Ratio policy.

“One of the things we’ve done is to engage the central bank, and they asked for a follow-up letter. I’ve done that,” he disclosed.

“What I then told the central bank when we engaged them was that, look, you have the cash reserve ratio where all the banks put 25% of their deposits at the central bank. This is idle, not doing anything.”

He proposed that a small portion of these reserves could be directed to save the indigenous cocoa buyers.

“Can we look at apportioning 2% or 3% of this Cash Reserve Ratio just to support indigenous LBCs?” he asked.

“We can restrict it to cocoa purchases, just to ensure that they also don’t go using it for oil, tin tomatoes, and all those things.”

Dr. Abbey expressed hope that a positive response from the Bank of Ghana could provide lifeline support to the local cocoa buying firms, whose survival is now in question.

“We believe that if there’s a positive response, it will be able to help, especially the indigenous LBCs. Otherwise, if we continue with this financing model, I fear that most of them might go extinct.”

His comments follow Cocobod’s recent shift from syndicated loans to a 60-40 model with cocoa buyers for the 2025/26 season, a change he says compelled him to travel to Europe and North America to engage international buyers directly.

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The Bank of Ghana (BoG) is investigating the reintroduction of transfer charges by some commercial banks following the recent removal of the E-Levy.

Customers have raised concerns about new or increased fees on transfers between personal bank accounts and mobile money wallets—charges that resurfaced almost immediately after the E-Levy was scrapped.

According to BoG data, the banking sector saw a GHC 5 billion drop in total deposits between March and April 2025. While the Central Bank is yet to determine the cause, Governor Dr. Johnson Asiama says affected banks will be engaged to ensure transparency and safeguard consumer interests.

“It is something that came to our attention that some banks were imposing these kinds of charges. We are looking into that. I am aware of one particular bank. This is very well noted and we are happy to look into the matter,” he stated during the recent Monetary Policy Committee briefing, responding to a question from Citi Business News‘ Nii Larte Lartey.

Meanwhile, mobile money platforms recorded a significant uptick in activity. In April 2025, the total value of mobile money transactions reached GHC 365.0 billion—a 3.8% increase from GHC 351.7 billion in March. This marks the highest monthly value recorded so far this year.

The number of transactions also rose, from 764 million in March to 778 million in April, underscoring the growing reliance on mobile money for both personal and business use.

The BoG attributes this continued growth to increased mobile penetration, the expansion of agent networks, and the convenience of mobile-based financial services, all of which contribute to deepening financial inclusion and accelerating the shift toward a cash-lite economy.

citinewsroom.com

Ghana’s mobile money ecosystem recorded a significant rise in transactional activity in April 2025, with the total value of transactions reaching a record GHC 365.0 billion, according to the latest summary of economic and financial data published by the Bank of Ghana.

This represents a month-on-month increase of 3.8% from GHC 351.7 billion recorded in March 2025. It also marks the highest monthly value since the beginning of the year, underscoring the growing reliance on mobile financial services for both personal and business transactions.

In tandem with the value surge, the number of mobile money transactions also rose, climbing from 764 million in March to 778 million in April. The continued expansion highlights mobile money’s pivotal role in promoting financial inclusion and streamlining digital payments nationwide.

The data further indicates a steady increase in mobile money usage, driven by rising mobile penetration, agent network growth, and the convenience of mobile-based financial platforms.

Analysts expect the trajectory to continue upward as Ghana’s digital economy deepens, and regulatory support remains favourable.

citinewsroom.com