COCOBOD decides to issue $1 Billion through Commercial Papers to finance Cocoa purchases. Ghana's Finance Minister, Dr. Cassiel Ato Forson, has announced that the Ghana Cocoa Board (COCOBOD) plans to raise approximately US$1 billion through the issuance of commercial papers to finance cocoa bean purchases for the 2026/2027 crop season.

Speaking at the Ghana UK Investment Summit 2026 in London, Dr. Forson explained that the move is part of a broader strategy to reduce COCOBOD's reliance on traditional offshore syndicated loans, which have become increasingly difficult to obtain in recent years.

According to him, the transaction advisor overseeing the programme has completed its work and submitted a final report, clearing the way for the issuance to begin in the coming weeks.

Dr. Forson revealed that the commercial paper programme will be issued in three separate tranches and will attract funding not only from Ghanaian banks but also from pension funds and foreign investors.

"The transaction advisor has 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 said.

The Finance Minister noted that the programme is still subject to the passage of the new Cocoa Bill by Parliament and approval by the President. Once those legal requirements are met, government will provide additional details about the structure and implementation of the fundraising initiative.

The planned fundraising is expected to provide COCOBOD with enough liquidity to purchase cocoa beans during the next crop season, ensuring timely payments to farmers and supporting operations throughout the cocoa value chain.

The announcement represents a major shift in the way Ghana finances its cocoa sector. For many years, COCOBOD depended on annual syndicated loans from international banks to fund cocoa purchases. However, increasing debt levels, global market uncertainty, and tighter lending conditions have made that financing model more challenging.

Under the proposed arrangement, COCOBOD will issue cocoa linked debt instruments within the domestic market. The funds raised will be used to purchase cocoa beans and will be repaid from cocoa sales proceeds within the same crop year, creating a revolving financing structure.

Industry analysts believe the initiative could help strengthen Ghana's capital market by attracting investments from pension funds, institutional investors, and international investors seeking exposure to the country's cocoa industry.

The new financing framework is also expected to provide support for indigenous Licensed Buying Companies, many of which have faced challenges under the existing financing system. It could also enable COCOBOD to increase cocoa sales to local processing companies, boosting value addition, industrial growth, and job creation.

COCOBOD's financial position has been under close scrutiny in recent years. Earlier this year, its debt burden was estimated at around GH¢32 billion. Market observers believe that a successful commercial paper programme could diversify the institution's funding sources and improve the long term sustainability of cocoa sector financing.

The cocoa industry remains one of the most important sectors of Ghana's economy, contributing significantly to export earnings, foreign exchange inflows, and the livelihoods of millions of people. Government officials believe the new financing model will help strengthen the sector while ensuring continued support for cocoa farmers across the country.