COCOBOD is set to introduce cedi-denominated commercial notes to finance cocoa purchases beginning with the 2026/27 crop season, marking a major shift in Ghana’s cocoa financing structure.
The new model, announced by COCOBOD Chief Executive Officer Dr. Randy Abbey, is expected to reduce dependence on foreign financing arrangements while boosting opportunities for local cocoa processors and strengthening domestic participation in the sector.
Speaking during a panel discussion at the Africa Cocoa Finance and Investment Forum 2026 at the London Stock Exchange, Dr. Abbey described the transition as part of broader reforms aimed at creating a more sustainable and resilient cocoa financing framework.
“There was a need to look for a new funding model that we believed could be sustainable and also ensure that we are able to optimize local processing capacity.” - Dr. Randy Abbey
Shift Away from Syndicated Loans
For decades, Ghana financed annual cocoa purchases through syndicated loans arranged with international banks. However, that structure came under significant pressure during the 2023/24 crop season following disruptions within the cocoa sector.
The financing challenges forced COCOBOD to adopt an interim buyer-funded arrangement under which international buyers and off-takers provided financing support for cocoa purchases.
Dr. Abbey acknowledged that the temporary model faced operational challenges, including payment delays and sustainability concerns.
“We are hoping that with the 2026/27 season, we will be able to come up with a new financing model which will be a domestic fundraising model. We are actually going to come up with commercial notes.” - Dr. Randy Abbey
Domestic Investors to Drive Funding
Under the proposed arrangement, the commercial paper programme will be denominated in Ghana cedis and largely funded through domestic liquidity sources such as pension funds and institutional investors.
According to Dr. Abbey, recent improvements in Ghana’s macroeconomic environment, including lower interest rates and stronger liquidity conditions, have created the right conditions for the transition.
“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.” - Dr. Randy Abbey
He added that the new system is expected to provide greater certainty for Licensed Buying Companies and improve confidence across the cocoa value chain.
“We believe that the interest rates in Ghana now are at the right place for us to go into the market and look at this funding,” he said.
Pricing Reforms and Local Processing
Beyond financing reforms, COCOBOD is also seeking amendments to the Cocoa Board Act to establish a more responsive pricing mechanism for cocoa farmers.
The proposed system will maintain the government’s commitment to pay farmers 70 percent of the declared Free on Board price while allowing periodic adjustments based on global cocoa prices and exchange rate movements.
Officials believe the reforms will improve pricing transparency, stabilise farmer incomes and strengthen long-term sustainability within Ghana’s cocoa industry.
The transition comes at a critical period for Ghana’s cocoa sector as policymakers push to increase local processing, expand value addition and reduce exposure to external financing risks amid volatile global commodity markets.
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