Ghana COCOBOD seeks US$1.4B domestic funding for 2026/27 cocoa purchases
The financing plan includes cedi bonds and commercial paper as Ghana shifts cocoa-sector funding toward domestic capital markets.
GHANA – Ghana Cocoa Board (COCOBOD) is seeking to raise GH¢16.3 billion (US$1.4 billion) from domestic investors to finance cocoa purchases for the upcoming 2026/27 season, according to a government presentation seen by Reuters.
The cocoa regulator is turning to Ghana’s domestic debt markets after its decade-old syndicated loan arrangement with international banks collapsed during the 2023/24 season. A separate arrangement involving international trading houses pre-financing cocoa purchases also fell through last season, contributing to delays in payments to farmers.
Farmers and licensed cocoa buyers have raised concerns about financing constraints and uncertainty over the opening of the new cocoa season. Ghanaian cocoa buyers said last week that COCOBOD owed them about GH¢4 billion for purchases made during the previous season.
Cocoa Capital PLC, a newly established special purpose vehicle, is expected to issue an initial GH¢2.3 billion bond and GH¢4 billion in commercial paper this week.
The commercial paper, with maturities of up to 270 days, will finance seasonal cocoa purchases, while bonds with maturities of up to five years will refinance COCOBOD’s existing short-term debt.
Debt repayments will be backed by cocoa export receivables generated from selected forward sales contracts, according to the investor presentation. Eligible investors include commercial banks, pension funds, insurers, stockbrokers, high-net-worth individuals, other institutional investors and international cocoa buyers.
COCOBOD said on X that the government had engaged investors as part of efforts to mobilise the domestic capital market to finance Ghana’s cocoa sector. The regulator did not respond to Reuters’ request for comment on the planned issuance.
The funding plan comes as Ghana prepares for the 2026/27 cocoa season. Ghana and Côte d’Ivoire, the world’s two largest cocoa producers, agreed in June to harmonise farmgate prices and season-opening dates following a meeting between their presidents.
Côte d’Ivoire opened its cocoa season on September 1, while Ghana had yet to announce its opening date as of the Reuters report.
Ghana reduced its official cocoa price paid to farmers from GH¢58,000 to GH¢41,392 per tonne in February after international cocoa prices declined and buyers became reluctant to purchase Ghanaian beans at the higher price.
COCOBOD expects Ghana’s cocoa production to fall by at least 16% in 2026/27 because of weather conditions, crop disease, ageing farms and illegal gold mining in cocoa-growing areas.
Production reached about 771,000 tonnes in 2025/26, exceeding COCOBOD’s initial forecast of 650,000 tonnes.
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