Ghana Cocoa Board (COCOBOD), through its special company Cocoa Capital PLC, has raised GHS 3.39 billion. This funding comes from the first part of its Commercial Paper (CP) programme. Investors will receive an 11% interest rate on these papers, which mature in 266 days. This initial fundraising effort fell short of the GHS 4 billion COCOBOD had targeted for this first tranche.
The funds are crucial for supporting cocoa purchases during the upcoming 2026/27 crop season. They will also strengthen the financial health of Ghana's vital cocoa sector. The shortfall means COCOBOD or Cocoa Capital PLC may need to find additional funding to cover the gap. This financing is part of a larger plan to raise GHS 16.3 billion for the cocoa industry.
This fundraising initiative is a key part of the Ghanaian government's broader efforts to reform the cocoa sector. It aims to create a more stable way to finance cocoa purchases and manage old debts. The programme uses a dedicated company, Cocoa Capital PLC, to access Ghana's local money markets. This move helps COCOBOD reduce its reliance on foreign loans and manage its finances more effectively. The Securities and Exchange Commission (SEC) has approved this domestic fundraising plan.
COCOBOD officials have described this programme as a new chapter for the cocoa sector. They state that these reforms will improve financial discipline and build a stronger value chain. A COCOBOD statement to investors highlighted a more resilient and disciplined sector. This approach aims to deliver value at every level of the cocoa industry. About 14% of the funds raised will specifically address COCOBOD's legacy debts.
The successful, though slightly under-subscribed, raising of GHS 3.39 billion shows investor confidence in Ghana's cocoa sector. However, the shortfall in the first tranche means COCOBOD must now consider how to secure the remaining funds. Future tranches will depend on COCOBOD's funding needs and market conditions. This programme is vital for ensuring timely payments to cocoa farmers and maintaining Ghana's position as a leading cocoa producer. Investors and market watchers will closely monitor how COCOBOD addresses the funding gap and manages subsequent tranches.
Cocoa Capital PLC plans to raise GHS 14 billion through Commercial Papers for short-term needs. The remaining GHS 2.3 billion will come from longer-term bonds to pay off existing COCOBOD debts. The overall GHS 16.3 billion Domestic Cocoa Notes Programme is designed to reshape the sector. It aims to position cocoa as a long-term source of shared prosperity for all involved. The repayment of these funds will be secured by money from future cocoa sales contracts. These funds will flow through special bank accounts, providing assurance to investors.
Bookrunners for this programme include Absa Bank Ghana Ltd, CalBank PLC, and GCB Bank PLC. Other bookrunners are Fincap Securities Ltd, One Africa Securities Ltd, and Stanbic Bank Ghana Ltd. Cocoa Capital PLC was created on August 7, 2026, specifically for this fundraising. It is fully owned by COCOBOD and has an initial capital of GHS 5 million. Its main job is to raise and manage funds for the cocoa sector's financial activities.