- Ghana Turns to Commercial Papers to Finance 2026/27 Cocoa Purchases
The Ghana Cocoa Board is preparing to issue commercial papers to raise about $1 billion to finance cocoa bean purchases for the 2026/27 crop season, as the government moves to reduce the sector’s dependence on traditional offshore syndicated loans.
Finance Minister Dr Cassiel Ato Forson disclosed the plan at the Ghana-UK Investment Summit 2026 in London, saying the new funding strategy forms part of efforts to give COCOBOD more reliable liquidity for crop purchases while diversifying its sources of financing.
According to Dr Forson, the transaction adviser for the deal has completed its work and submitted a report, clearing the way for the issuance to proceed in the coming weeks.
“The transaction advisor just submitted the report, and we will issue it very soon. We are not solely relying on Ghanaian banks but pension funds and non-resident investors. We will issue it in three tranches,” Dr Forson said.
The issuance will, however, depend on the passage of the new Cocoa Bill by Parliament and subsequent presidential assent. Once the required approvals are secured, the government is expected to provide further details on the structure and implementation of the fundraising programme.
The planned commercial paper programme is expected to provide COCOBOD with the liquidity needed to purchase cocoa beans, pay farmers and sustain operations across the cocoa value chain during the next crop season.
This move marks a major shift in Ghana’s cocoa financing model. For years, COCOBOD relied heavily on annual syndicated loans from international banks to fund cocoa purchases. But rising debt levels, market volatility and tighter global financing conditions have made that model increasingly difficult to sustain.
Under the new arrangement, COCOBOD intends to issue domestic cocoa-linked debt instruments to create a revolving fund that can be used to purchase cocoa and repaid from cocoa sales proceeds within the same crop year.
The strategy could deepen Ghana’s domestic capital market by attracting pension funds, local institutional investors and non-resident investors seeking exposure to the country’s cocoa sector.
It could also provide relief for indigenous Licensed Buying Companies, many of which have faced financing constraints under the existing funding structure.
A stronger and more predictable financing framework may also allow COCOBOD to sell larger volumes of cocoa beans to local processing companies, supporting value addition, industrialisation and job creation.
COCOBOD’s financing position has come under scrutiny in recent years amid concerns over its debt burden, which reportedly stood at about GH¢32 billion earlier this year.
Cocoa remains one of the country’s most important export commodities, supporting rural livelihoods, foreign exchange inflows and government revenue.
But the sector has been strained by debt, smuggling, production volatility, delayed payments, weak financing for local buyers and increasing pressure to reform COCOBOD’s balance sheet.
The proposed commercial paper programme is therefore not merely a financing transaction. It is a test of whether Ghana can redesign cocoa sector funding in a way that protects farmers, reduces offshore borrowing pressure and restores confidence in one of the country’s most strategic industries.
If successful, the model could give COCOBOD a more flexible financing tool and reduce exposure to external credit conditions. And when poorly structured, however, it could shift cocoa financing risks into the domestic market and expose pension funds, banks and other investors to sector-specific vulnerabilities.
