Global Cocoa Buyers Begin $4bn Advances to COCOBOD for 2025/26 Crop Purchases
Some international buyers of Ghana’s cocoa have begun advancing part of the over $4 billion earmarked for the purchase of cocoa beans for the 2025/26 crop season.
According to sources, the full amount will be disbursed in tranches, although a significant portion is expected before the end of the year. The move, industry analysts note, is aimed at securing firm commitments from COCOBOD for bean supply.
New Financing Framework
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 beginning of the season.
The new system replaced the long-standing pre-export syndicated loan structure that had supported Ghana’s cocoa purchases for more than three decades. Under the arrangement, traders channel funds through licensed cocoa buying companies (LBCs) to purchase beans from farmers, with COCOBOD serving as an intermediary.
Boost for the Cedi
Beyond the direct benefit to farmers, analysts argue that the inflows could provide crucial support for the cedi by strengthening the Bank of Ghana’s foreign reserves. The central bank’s latest Economic and Financial Data, released in July, placed reserves at $11.1 billion.
Governor of the Bank of Ghana, Dr Johnson Asiama, said the expected inflows should reinforce confidence in the central bank’s capacity to intervene in the market when needed.
“This development shows a favourable outlook for the cedi despite recent pressures,” Dr Asiama said. “As regulator, we have taken the needed actions to ensure that things do not get out of hand.”
He further assured businesses that Ghana’s macroeconomic fundamentals remain sound, pointing to improved liquidity measures that should bolster confidence in the local currency.
