The Ghana Cocoa Board (COCOBOD) is restructuring its financial framework by introducing cedi-denominated commercial notes to fund cocoa purchases starting from the 2026/27 crop season.
This strategy signifies a formal exit from the traditional syndicated loan model and the temporary buyer-led funding system utilized during recent sector disruptions.
Speaking at the Africa Cocoa Finance and Investment Forum 2026 at the London Stock Exchange, Chief Executive Officer Dr Randy Abbey explained that the domestic shift aims to diminish reliance on foreign off-takers and bolster local processing capacity.
“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 Abbey stated.
The move follows a period of instability where the previous syndicated loan structure, involving international banks, faced significant strain during the 2023/24 season.
Although an interim buyer-funded model was adopted, Dr Abbey acknowledged its lack of long-term viability due to operational pressures and payment delays.
“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,” he revealed.
The programme will tap into local liquidity, specifically targeting institutional investors and pension funds.
Dr Abbey suggested that stabilising macroeconomic conditions and favourable interest rates in Ghana have created an opportune moment for this 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. So we believe that there is that capacity,” he explained.
By institutionalising this domestic model, COCOBOD intends to provide greater certainty for Licensed Buying Companies (LBCs) and enhance confidence throughout the value chain.
Dr Abbey noted that guidelines for the programme will be released before implementation.
“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 added.
Parallel to these reforms, COCOBOD is seeking to amend the Cocoa Board Act to implement a more agile pricing mechanism.
The framework will uphold the commitment to pay farmers 70 per cent of the Free on Board (FOB) price while allowing for adjustments based on global market shifts and currency fluctuations.
