COCOBOD to Issue Commercial Papers to Raise $1 Billion for Cocoa Financing
Ghana’s cocoa sector is set for a significant financing overhaul after Finance Minister Dr Cassiel Ato Forson announced that the Ghana Cocoa Board will soon issue commercial papers to raise approximately US$1 billion to fund cocoa bean purchases for the 2026/2027 crop season.
Speaking at the Ghana-UK Investment Summit 2026 in London, Dr Forson said the move marks a deliberate shift away from the traditional offshore syndicated loans that COCOBOD has historically relied upon, which have become increasingly difficult to secure amid rising global financing pressures.
“The transaction advisor just submitted the report and we will issue very soon. We are not solely relying on Ghanaian banks but pension funds and non-resident investors.
We will issue it in three tranches,” he disclosed.
The issuance remains contingent on the passage of the new Cocoa Bill by Parliament and subsequent presidential assent, after which the government has pledged to provide further details on the structure and rollout of the programme.
Under the new arrangement, COCOBOD intends to issue domestic cocoa-linked debt instruments to create a revolving fund used to purchase cocoa beans and subsequently repaid from cocoa sales proceeds within the same crop year.
The structure is expected to attract investment from pension funds, local institutional investors, and foreign investors seeking exposure to Ghana’s cocoa sector, potentially deepening the country’s domestic capital market in the process.
The new financing framework is also anticipated to provide much-needed relief for indigenous Licensed Buying Companies that have struggled under the existing model, while enabling COCOBOD to channel greater cocoa volumes to local processing firms — supporting value addition, industrialisation, and job creation.
The announcement comes amid growing scrutiny of COCOBOD’s financial position, with the board’s debt burden standing at approximately GH¢32 billion earlier this year. Analysts say a successful commercial paper programme could diversify funding sources and improve the long-term sustainability of cocoa sector financing.
The cocoa industry remains one of Ghana’s most critical economic pillars, underpinning rural livelihoods, export earnings, and foreign exchange inflows. The government says the new model is designed to strengthen the sector’s resilience and ensure farmers continue to receive uninterrupted support.
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