Ghana targets $1 billion cocoa bond ahead of 2026/27 season
Ghana is preparing to raise $1 billion through domestic bond issuances to finance cocoa purchases from farmers as part of broader reforms in the country’s cocoa sector.
The planned cedi-denominated bond is expected to be issued ahead of the 2026/2027 cocoa season, which typically begins in August, according to a source familiar with the discussions.
Speaking at the Africa Cocoa Investment Forum in London on Wednesday, the Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Randy Abbey, said the move forms part of efforts to secure funding for the entire cocoa crop while reducing dependence on foreign loans and dollar-denominated financing.
“We are looking at funding the entire crop,” he stated, adding that current interest rates in Ghana make it favourable for the country to access the domestic market.
According to him, the initiative is also intended to establish a more stable and sustainable financing structure for the cocoa sector.
Although the exact value and timing of the bond issuance have not officially been confirmed by COCOBOD, Ghana had earlier announced plans to introduce domestic bonds as part of reforms aimed at strengthening control over its cocoa supply chain and aligning local prices more closely with international market trends.
The reforms are expected to help Ghana’s cocoa industry better withstand the sharp price fluctuations that have affected global cocoa markets in recent years.
Ghana’s cocoa market has traditionally been heavily regulated through COCOBOD, which purchases cocoa beans through licensed buying companies at fixed prices determined at the start of each season.
However, the system came under pressure in 2024 when cocoa prices on the international market surged to record highs before falling sharply by more than 70 percent. The price swings made it difficult for farmers to fully benefit from higher prices while also affecting the profitability of traders. Warehouses and ports reportedly became congested with unsold cocoa beans as domestic prices exceeded global market rates.
In February this year, Ghana announced plans to introduce a more flexible cocoa pricing mechanism that would allow producer prices to be adjusted more frequently in response to global market conditions.
The government also indicated that domestic bonds backed by cocoa beans would be used to create revolving funds for cocoa purchases.
In recent years, COCOBOD has relied on syndicated loans from international traders and financial institutions to finance cocoa purchases from farmers. However, market volatility has reportedly made repayment more challenging.
Any proposed changes to the cocoa purchasing system or plans to issue domestic bonds will require approval from Parliament.
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