COCOBOD to introduce new Cocoa Financing Model for 2026/2027 Season

Man in a patterned yellow shirt speaks at a press conference with multiple microphones in front of him.

By Prince Antwi May 11, 2026

The Chief Executive of the Ghana Cocoa Board (COCOBOD), Ransford Abbey, has announced that preparations for a new cocoa sector funding model are nearing completion ahead of its rollout in the 2026/2027 crop season.

According to Dr. Abbey, the proposed model represents a significant shift in Ghana’s cocoa financing strategy and is aimed at ensuring price stability and sustainable income for cocoa farmers.

He disclosed this during a panel discussion on Pre-Export Liquidity and Long-Term Capital at the Africa Cocoa Finance and Investment Forum (ACFIF 2026) held at the London Stock Exchange.

Dr. Abbey explained that Ghana’s cocoa sector has depended for more than 30 years on syndicated loans backed by forward cocoa sales to finance annual crop purchases.

While the arrangement guaranteed access to liquidity, he noted that it also required between 70 and 92 per cent of the cocoa crop to be collateralised to offshore financiers, highlighting the need for a new financing approach.

“The new funding model will come with a new pricing mechanism that will involve periodic reviews — possibly quarterly — and will apply to the entire crop,” he stated.

He said the new system would focus on mobilising capital through instruments such as commercial paper and commercial notes while leveraging domestic liquidity, including support from institutional investors.

Dr. Abbey further explained that the reform would maintain the policy of paying farmers 70 per cent of the Free-On-Board (FOB) price while introducing periodic price reviews to reflect movements in global cocoa prices and exchange rates.

According to him, the objective is to balance income stability for farmers with the long-term financial sustainability of the cocoa sector.

The COCOBOD CEO added that the new funding framework is expected to increase participation in the cocoa economy by expanding financing opportunities for local processors and indigenous Ghanaian businesses.

He expressed confidence in Ghana’s financial sector to support the transition, citing improving macroeconomic conditions and increasing investor interest in structured financial instruments.

Dr. Abbey also acknowledged the need for clarity among stakeholders, particularly Licensed Buying Companies (LBCs) and investors, regarding the structure and scale of support under the new arrangement.

He revealed that a detailed prospectus outlining participation opportunities for financial institutions and investors is currently being finalised and will be presented to stakeholders before the start of the 2026/2027 crop season.

Dr. Abbey expressed optimism that the new model would better protect cocoa farmers from fluctuations in global cocoa prices in the years ahead.

The Africa Cocoa Finance and Investment Forum (ACFIF) 2026 was organised by Cocoa Trade and Invest Africa in collaboration with the International Cocoa Organization (ICCO) and the United Kingdom office of the Cocoa Marketing Company (CMC UK), bringing together policymakers, investors, and industry players to discuss reforms and investment opportunities within Africa’s cocoa sector.