Ghana Cocoa Board (COCOBOD) plans to introduce cedi-denominated commercial notes to finance cocoa purchases beginning with the 2026/27 crop season. Officials say the decision forms part of a major restructuring of Ghana’s cocoa financing system.
The new approach will replace the country’s long-standing syndicated loan model as well as the more recent buyer-led financing arrangement that emerged after funding difficulties affected the cocoa sector in recent years.
Chief Executive Officer of Ghana Cocoa Board, Dr. Randy Abbey, announced the plan during a panel discussion at the maiden Africa Cocoa Finance and Investment Forum 2026 held at the London Stock Exchange.
According to Dr. Abbey, the domestic financing model aims to reduce Ghana’s dependence on foreign cocoa buyers while helping local processors gain better access to cocoa beans for value addition within the country.
“There was a need to look for a new funding model that we believed could be sustainable and also ensure that we are able to optimize local processing capacity,” he said.
For many years, Ghana relied on syndicated loans from international banks to finance annual cocoa purchases. However, the arrangement came under serious pressure during the 2023/24 crop season. The situation forced Ghana Cocoa Board to adopt a temporary buyer-funded system in later seasons, where international buyers and off-takers supported cocoa purchases financially.
Dr. Abbey admitted that the interim arrangement could not continue due to payment delays and increasing operational difficulties in the sector.
“We are hoping that with the 2026/27 season, we will be able to come up with a new financing model which will be a domestic fundraising model. We are actually going to come up with commercial notes,” he revealed.
The proposed programme will issue commercial paper in Ghana cedis and draw funding mainly from local liquidity sources such as pension funds and institutional investors. Dr. Abbey expressed confidence that current economic conditions, including lower interest rates and stronger liquidity in the local financial market, make the transition possible.
“We have done the study and we believe that there is enough funding available. In fact, the pension funds alone are sitting on over $150 million in Ghana. So we believe that there is that capacity,” he explained.
He further stated that the new financing arrangement would create greater certainty for Licensed Buying Companies (LBCs) and strengthen confidence throughout the cocoa value chain once fully implemented.
“We believe that the interest rates in Ghana now are at the right place for us to go into the market and look at this funding,” he added.
Dr. Abbey disclosed that Ghana Cocoa Board would announce detailed participation rules and operational guidelines for the commercial notes programme before implementation begins.
Apart from the financing reforms, the cocoa regulator also plans to amend the Cocoa Board Act to introduce a more flexible cocoa pricing system.
Under the proposed arrangement, government will continue paying cocoa farmers 70 percent of the declared Free on Board (FOB) price. At the same time, the new structure will allow periodic price adjustments based on movements in global cocoa prices and changes in exchange rates.
Officials believe the reforms will improve pricing transparency, provide more stable incomes for farmers, and strengthen the long-term sustainability of Ghana’s cocoa industry.
Dr. Abbey expressed confidence that all procurement processes, transaction advisory services, and fundraising arrangements for the new model would be completed before the start of the 2026/27 cocoa season.
The planned reforms come at an important time for Ghana’s cocoa sector as policymakers work to stabilise production, expand local processing, and reduce the industry’s dependence on external financing amid growing uncertainty in global commodity markets.
