Ghana Cocoa Board settles US$165.9M bond arrears 

GHANA – Ghana’s cocoa industry marked a major financial milestone after the Ghana Cocoa Board (COCOBOD) settled GH¢2 billion (US$165.9M) in coupon arrears owed to bondholders, signaling renewed fiscal discipline in one of the country’s most vital export sectors. 

The payment, made on September 1, 2025, covered obligations on cocoa bills that were restructured into bonds under the Domestic Debt Exchange Programme. The move primarily benefited commercial banks, which had carried significant exposure during the 2023 restructuring exercise. 

The clearance resolves debts that were converted from short-term cocoa bills into longer-term bonds, an initiative supported by local banks serving as transaction advisors. The restructuring aimed to ease fiscal pressures, stabilize COCOBOD’s finances, and guarantee sustainable funding for annual cocoa purchases. 

Alongside this settlement, COCOBOD pledged to honor an additional GH¢1.9 billion (US$157.7M) in coupon payments due in 2026 and 2027, including principal repayments. Officials said the commitment underscores the institution’s determination to meet obligations on time and rebuild trust with investors. 

Industry analysts note the payment improves COCOBOD’s credit standing, boosting access to new financing at competitive rates ahead of the 2025/26 cocoa season. The demonstration of financial discipline also enhances Ghana’s overall investment climate, reflecting improved debt management practices. 

COCOBOD Chief Executive Dr. Randy Abbey, appointed in January 2025 by President John Dramani Mahama, reaffirmed the board’s dedication to restoring financial stability. He emphasized management’s goal of placing COCOBOD on a sound financial footing before the end of the administration’s first term. 

Bank of Ghana Governor Dr. Johnson Asiama disclosed that COCOBOD anticipates more than US$4 billion in pre-financing inflows from buyers. These funds will support cocoa purchases for the 2025/26 crop season, strengthen Ghana’s foreign reserves, and stabilize the cedi. 

The debt clearance follows broader restructuring measures under the International Monetary Fund (IMF) program.  

Creditors accepted a reduced 12.5% interest rate—down from 30%—and agreed to defer bond maturities over five years, reflecting international cooperation in Ghana’s recovery efforts. 

Despite financial progress, challenges remain. COCOBOD recently indicated cocoa production for the season will likely reach 590,000 tonnes, falling short of the 610,000-tonne target. The shortfall highlights ongoing operational constraints even as fiscal recovery gains momentum. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.