Ghana Cocoa Board (COCOBOD) will introduce cedi-denominated commercial notes to finance cocoa purchases, starting with the 2026/27 crop season. This new approach will replace the traditional syndicated loan model and more recent buyer-led arrangements. The shift marks a significant restructuring of Ghana’s cocoa financing system.
This initiative aims to reduce Ghana’s dependence on foreign cocoa buyers. It will also help local processors gain better access to cocoa beans for domestic value addition. The previous syndicated loan model faced considerable pressure during the 2023/24 crop season. This led to a temporary buyer-funded system, which proved unsustainable due to payment delays and operational difficulties.
This move fits into Ghana’s broader economic strategy of self-reliance and boosting local capacity. The country has been working to stabilize its currency and reduce external debt vulnerabilities. Data from the Bank of Ghana indicates efforts to strengthen domestic financial markets and liquidity. Utilizing local pension funds and institutional investors aligns with these national economic objectives.
Dr. Randy Abbey, CEO of Ghana Cocoa Board, announced the plan at the Africa Cocoa Finance and Investment Forum 2026 in London. He stated, “There was a need to look for a new funding model that we believed could be sustainable.” Dr. Abbey confirmed the domestic financing model aims to optimize local processing capacity. He believes current economic conditions, including lower interest rates and stronger local market liquidity, make this transition viable. “We have done the study and we believe that there is enough funding available. In fact, the pension funds alone are sitting on over $150 million in Ghana.”
The shift to domestic commercial notes will likely create more certainty for Licensed Buying Companies (LBCs). It is expected to strengthen confidence across the entire cocoa value chain. Markets will watch for the successful implementation and the impact on the cedi's stability. Policymakers will monitor how these reforms influence Ghana's balance of payments. The move could also boost the liquidity and depth of Ghana's local financial markets.
The proposed programme will issue commercial paper in Ghana cedis. It will draw funding primarily from local liquidity sources. This includes pension funds and other institutional investors. Dr. Abbey expressed confidence in the current interest rate environment in Ghana. He noted this makes it favorable for accessing domestic funding.
COCOBOD will also amend the Cocoa Board Act to introduce a more flexible cocoa pricing system. The government will continue to pay cocoa farmers 70% of the declared Free on Board (FOB) price. The new structure will allow periodic price adjustments. These adjustments will reflect movements in global cocoa prices and exchange rates. Officials believe these reforms will enhance pricing transparency for farmers. They expect it to provide stable incomes and ensure the long-term sustainability of Ghana’s cocoa industry.
Dr. Abbey is confident that all necessary procurement processes and fundraising arrangements will be completed. This will occur before the start of the 2026/27 cocoa season. These reforms are crucial for Ghana's cocoa sector. They aim to stabilize production, expand local processing, and reduce dependence on external financing. This comes amid increasing uncertainty in global commodity markets.