Ghana to launch cocoa board commercial paper programme to replace syndicated loans

GHANA – Ghana’s Finance Minister Dr. Cassiel Ato Forson has announced that the government is ready to introduce a new commercial paper programme for the Ghana Cocoa Board (COCOBOD), replacing the longstanding syndicated loan system used to finance cocoa purchases. 

Speaking at the Ghana-UK Investment Summit 2026, Dr. Forson said transaction advisers engaged to design the new financing framework have completed their work and submitted their report, paving the way for the rollout of the commercial paper facility. 

According to him, the new structure will broaden COCOBOD’s investor base beyond local banks to include pension funds and non-resident investors, with the aim of diversifying funding sources and reducing dependence on annual syndicated borrowing. 

“To ensure steady financing throughout the cocoa season, the commercial paper will be issued in three tranches,” Forson explained. “The first tranche will cover up to two months of cocoa purchases, the second will finance an additional three months, while the final tranche will fund the remainder of the season.” 

He added that the programme is structured around an escrow arrangement, where proceeds from cocoa sales will be paid into a dedicated account and used directly to repay investors.  

The facility will run for eight months and will be fully retired at the end of each cocoa season before being reissued for the next cycle. 

Forson said the initiative marks a significant shift away from COCOBOD’s traditional syndicated loan model, which has historically provided liquidity for cocoa purchases but has limited the sector’s ability to expand value addition and processing capacity. 

He noted that the new financing approach is expected to strengthen local industrialisation within the cocoa value chain and improve efficiency in cocoa financing operations. 

“As the cocoa is being purchased through our own resources and domestic bonds, and with close collaboration between the Government of Ghana and COCOBOD, we will be able to process a minimum of 50% of the cocoa purchased locally. Everything is in place and we are ready to launch,” he said. 

In May, Ghana announced plans to raise US$1 billion through domestic, local-currency bonds for the 2026/27 cocoa season, aimed at reducing reliance on external financing. 

The fundraising plan, expected ahead of the next cocoa season beginning around August, will be conducted in Ghanaian cedis rather than U.S. dollars, marking a major shift in how the country finances one of its most important export commodities. 

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