The Ghana Cocoa Board (COCOBOD) has announced a strategic shift in its financing approach, opting for $1.4 billion in domestic funding to finance cocoa purchases for the 2026/2027 season. This move, equivalent to approximately GH¢16.3 billion, marks a departure from COCOBOD's traditional reliance on international borrowing. Deputy Chief Executive Officer of COCOBOD, Ato Boateng, emphasized that this decision is not a result of being excluded from international financial markets, but rather a deliberate change in strategy.
According to Ato Boateng, several international banks had approached COCOBOD about returning to the international market since he assumed office, but the board had chosen a different approach. He cited dissatisfaction with the conduct of some international financiers during COCOBOD's financial difficulties as a reason for this decision. Mr. Boateng expressed concern about "fair-weather friends" who abandon COCOBOD during times of crisis only to return when the situation improves.
COCOBOD's previous financing model, which relied heavily on international cocoa buyers, left Ghana's cocoa purchasing system vulnerable to fluctuations in international markets. Under the buyer-financed model, international buyers provided funds through COCOBOD to licensed buying companies (LBCs) to purchase cocoa beans from farmers. However, when international prices dropped, these buyers ceased funding, creating problems for COCOBOD.
The new funding plan follows the collapse of COCOBOD's decade-old syndicated loan arrangement with international banks during the 2023/2024 cocoa season, as well as the failure of a separate arrangement involving international trading houses to pre-finance cocoa purchases last season. COCOBOD's operating revenue rose to GH¢48.6 billion in 2025 from GH¢15.8 billion in 2024, while its net profit margin improved from a negative 35.1% to 10.4%.
The proposed domestic financing is expected to support cocoa purchases for the 2026/2027 season, settle outstanding obligations, and provide greater stability in financing the cocoa sector. COCOBOD presented its proposed financing strategy to the Ministry of Finance, which subsequently took it to Cabinet for approval. The board's move to explore domestic sources of financing was approved by Cabinet.
COCOBOD has set up Cocoa Capital PLC to raise GH¢16.3 billion for the cocoa sector. The board's decision to shift to domestic funding aims to reduce its dependence on international financing and explore alternative sources of funding for cocoa purchases. This strategic shift is expected to provide greater stability and control over Ghana's cocoa purchasing system.
The domestic funding plan is also expected to help COCOBOD meet its financial obligations and ensure a smooth cocoa purchasing process for the 2026/2027 season. Key stakeholders, including investors and international trading partners, have been engaged in discussions to ensure the success of this new financing approach.
Key points
- COCOBOD opts for $1.4bn domestic funding for cocoa purchases
- The move is a strategic shift, not due to market exclusion
- Domestic funding aims to provide greater stability in financing the cocoa sector
