Ghana plans US$1B domestic bond to finance cocoa purchase ahead of 2026/2027 season

GHANA – Ghana is planning to raise US$1 billion through domestic bonds to finance cocoa purchases from farmers ahead of the 2026/27 crop season, in a major shift aimed at restructuring how the country funds its cocoa sector. 

The move comes as the West African nation, the world’s second-largest cocoa producer, continues to face market volatility and financing pressures following a sharp decline in cocoa prices after the commodity’s historic rally in 2024. 

According to the head of the Ghana Cocoa Board, Randy Abbey, the planned bond will be issued before the new cocoa season begins around August and will be denominated in the local currency, the cedi. 

“We are looking at funding the entire crop. We believe that the interest rates in Ghana now are at the right place for us to go into the market,” Abbey said at the Africa Cocoa Investment Forum in London. 

He added that the strategy is intended to reduce Ghana’s dependence on dollar-based borrowing and foreign lenders, while creating a more stable and predictable financing structure for cocoa purchases. 

Abbey further noted that past reliance on trader-backed loans has contributed to repayment pressures within the cocoa financing system, prompting the need for a new funding model. 

Ghana’s cocoa sector has also been affected by liquidity constraints within the state-controlled purchasing structure. The state-owned Producer Buying Company (PBC), which is mandated to act as a buyer of last resort, has reportedly struggled with mounting debts. 

According to Reuters, the company is facing debts of GH¢673 million ($60 million), raising concerns about possible asset seizures. It has also reportedly accumulated arrears of about 24 million cedis owed to farmers for more than 9,000 bags of cocoa already delivered. 

The financing strain has come amid broader macroeconomic pressures in Ghana. Inflation rose to 3.4% year-on-year in April 2026, up from 3.2% in March, marking the first increase since late 2024. 

At the same time, the Bank of Ghana has continued its monetary easing cycle, cutting interest rates repeatedly since July 2025. In January 2026, the central bank reduced its policy rate to 15.50% following a 250-basis-point cut, before lowering it further to 14% in subsequent meetings. 

The proposed bond is expected to play a central role in stabilizing cocoa financing and ensuring timely payments to farmers in the upcoming season. 

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