Ghana Cocoa Board (COCOBOD) has successfully raised GHS 3.396 billion from its inaugural commercial paper issuance. These funds are strictly earmarked for cocoa purchases and core operations for the 2026/2027 crop season. Dr. Ransford Anertey Abbey, COCOBOD's Chief Executive, confirmed the proceeds will not be used to settle other legacy debts.
The issuance, conducted through Cocoa Capital PLC, a COCOBOD subsidiary, is part of a larger GHS 16.3 billion Domestic Cocoa Notes Programme. This programme includes GHS 14 billion for commercial paper to finance cocoa purchases and GHS 2.3 billion in bonds to refinance specific existing debts. The initial GHS 3.396 billion was secured from domestic institutional investors, attracting bids of approximately GHS 3.586 billion from 38 investors at a yield of 11%.
This strategic financial move marks a significant shift in how COCOBOD manages its funding, aiming to reduce reliance on external borrowing. Historically, COCOBOD has faced challenges with debt accumulation and timely payments to farmers. This new domestic financing framework seeks to provide a more stable and predictable funding source for Ghana's vital cocoa industry, which is a cornerstone of the national economy, contributing significantly to export earnings and rural livelihoods.
Dr. Abbey stated that these restrictions on fund usage align with COCOBOD’s core mandate under its new governing legislation. He emphasised that the financing arrangement aims to strengthen the Board’s capacity to purchase cocoa. This directly supports the livelihoods of cocoa farmers, ensuring they receive timely payments for their produce.
The COCOBOD chief executive reiterated the Board's commitment to transparency, accountability, and financial discipline. This includes proper financial reporting and fulfilling its debt-service obligations. This commitment is crucial for maintaining investor confidence and ensuring the long-term sustainability of the cocoa sector.
This domestic financing initiative is part of broader efforts to establish a more sustainable funding framework for Ghana’s cocoa industry. By prioritising cocoa purchases, COCOBOD aims to protect farmer incomes and enhance the efficiency of the cocoa value chain. The success of this initial issuance indicates strong domestic investor confidence in the sector's future. Future issuances under the GHS 16.3 billion programme will be closely watched. They will reveal COCOBOD's ability to consistently secure funding and manage its financial obligations effectively.