International buyers advance over US$4B to COCOBOD for 2025/2026 Ghana Cocoa purchases
COCOBOD receives substantial upfront payments from global traders under its revised funding model to secure cocoa supply and stabilize reserves.
GHANA – International buyers of Ghana’s cocoa have begun advancing part of more than US$4 billion to the Ghana Cocoa Board (COCOBOD) for the purchase of cocoa beans for the 2025/2026 crop season.
According to JoyBusiness, the full amount will be disbursed in tranches, with a significant portion expected before the end of the year. Industry analysts indicate that the move is aimed at securing firm commitments from COCOBOD for bean supply.
The advances form part of COCOBOD’s revised funding model introduced in 2023, which requires global traders to deposit at least 60 percent of the value of their forward contracts at the start of the season.
This system replaced the long-standing pre-export syndicated loan structure that had supported Ghana’s cocoa purchases for over three decades.
Under the revised arrangement, traders channel funds through licensed cocoa buying companies (LBCs) to purchase beans directly from farmers, with COCOBOD acting as an intermediary.
Beyond supporting farmers, analysts suggest that the inflows could bolster the cedi by strengthening the Bank of Ghana’s foreign reserves.
According to the central bank’s July Economic and Financial Data, reserves stood at US$11.1 billion. Governor of the Bank of Ghana, Johnson Asiama, noted that the expected inflows should reinforce confidence in the bank’s capacity to intervene in the market when necessary.
“This development shows a favourable outlook for the cedi despite recent pressures,” he stated.
The move follows COCOBOD’s settlement of GH¢2 billion (US$165.9 million) in coupon arrears owed to bondholders on September 1, 2025.
The payment covered obligations on cocoa bills restructured into bonds under the Domestic Debt Exchange Programme. COCOBOD has also pledged to honor an additional GH¢1.9 billion (US$157.7 million) in coupon payments due in 2026 and 2027, including principal repayments.
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