Ghana is preparing a major shift in how it finances cocoa purchases after Finance Minister Dr. Cassiel Ato Forson announced plans for the Ghana Cocoa Board (COCOBOD) to raise approximately US$1 billion through the issuance of commercial papers to fund the 2026/2027 crop season.
Speaking at the Ghana-UK Investment Summit 2026 in London, Dr. Forson said the initiative forms part of a broader strategy to reduce COCOBOD’s reliance on traditional offshore syndicated loans, which have become increasingly difficult and costly to access amid changing global financing conditions.
According to the Finance Minister, the groundwork for the transaction has already been completed.
“The transaction advisor just submitted the report and we will issue very soon. We are not solely relying on Ghanaian banks but pension funds and non-resident investors. We will issue it in three tranches.” - Dr. Forson
New Financing Model for Cocoa Purchases
The planned commercial paper programme is expected to provide COCOBOD with the liquidity needed to purchase cocoa beans from farmers and sustain operations throughout the cocoa value chain during the next crop season.
However, Dr. Forson noted that the rollout remains dependent on the passage of the new Cocoa Bill by Parliament and subsequent presidential assent.
Once those legal requirements are fulfilled, government is expected to release additional details on the structure and implementation of the fundraising programme.
The announcement signals a significant departure from Ghana’s long-standing dependence on annual syndicated borrowing arrangements from international lenders to finance cocoa purchases.
Over the years, COCOBOD secured funding from global financial institutions to pay farmers and support cocoa procurement activities. But mounting debt pressures, volatility in global markets and tighter lending conditions have increasingly complicated access to such facilities.
Deepening Domestic Capital Markets
Under the new framework, COCOBOD intends to introduce domestic cocoa-linked debt instruments designed to operate as a revolving financing mechanism. Funds raised through the issuance would support cocoa purchases and later be repaid from cocoa sales proceeds within the same crop year.
Industry watchers believe the approach could help strengthen Ghana’s capital markets by opening investment opportunities for pension funds, local institutional investors and foreign investors interested in participating in the cocoa economy.
The structure also has the potential to improve access to financing for indigenous Licensed Buying Companies, many of which have faced difficulties under the existing funding arrangements.
Beyond procurement, officials expect the model to support broader value addition ambitions by enabling greater cocoa supply to local processing companies, advancing industrialisation efforts and creating opportunities for employment.
Addressing COCOBOD’s Debt Burden
COCOBOD’s financial position has remained a subject of public discussion as concerns grow over its accumulated obligations. Earlier this year, the organisation’s debt burden was reported at about GH¢32 billion, raising questions about the sustainability of existing financing models.
Analysts suggest that a successful commercial paper programme could diversify funding sources and reduce pressure associated with conventional borrowing structures.
For government, the objective extends beyond securing short-term financing.
The cocoa sector remains one of Ghana’s most important economic pillars, supporting rural livelihoods, generating export revenues and contributing significantly to foreign exchange inflows.
Authorities hope the new financing framework will strengthen resilience across the sector while ensuring farmers continue to receive timely support and stable market participation.
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