It appears the Ghana Cocoa Board (COCOBOD) is struggling to raise funds from foreign and domestic investors for cocoa purchases for the 2026/27 crop season as originally planned.
This is because a leading global news agency, Reuters, has reported that COCOBOD is seeking to raise GH¢16.3 billion ($1.4 billion) from only domestic investors to fund cocoa purchases for the upcoming season.
Eligible participants, according to Reuters, include commercial banks, pension funds, insurance companies, stockbrokers, high-net-worth individuals, other institutional investors and international cocoa buyers.
It is not, however, clear if Ghanaian workers will allow their pension funds to be invested in the highly volatile cocoa sector.
According to Reuters, the national regulator is turning to domestic debt markets to fund its operations after struggling to finance the sector since its decade-old syndicated loan arrangement with international banks collapsed during the 2023/24 season.
It said a separate arrangement under which international trading houses pre-financed purchases fell through last season, contributing to delays in payments to farmers.
Farmers and buyers have blamed funding challenges for uncertainty over the timing of the new season.
The Reuters disclosed that Cocoa Capital PLC, a new special purpose vehicle, is expected to issue a first tranche of debt to raise funds this week, comprising a GH¢2.3 billion bond and GH¢4 billion in commercial paper.
It said the commercial paper with tenors of up to 270 days will be used to finance seasonal cocoa purchases, while bonds with a maturity of up to five years will be used to refinance existing short-term debts held by COCOBOD, according to the presentation made last Thursday.
Ghana’s cocoa buyers last week said they were owed about GH¢4 billion by COCOBOD for last season’s crop, and want it paid before the new crop year begins. The Chamber of Cocoa Marketers, which represents the country’s licensed cocoa buyers, also warned that financing may not yet be in place to fund purchases once the season opens.
Ghana and Ivory Coast, the world’s two biggest cocoa producers, agreed in June to harmonise their farmgate prices and season start dates, following a meeting between the two countries’ presidents.
While Ivory Coast’s season opened on September 1, Ghana indicated the season will start on Friday, September 25, 2026.
Debt repayments will be backed by assigned cocoa export receivables generated from selected forward sales contracts, the presentation showed.
COCOBOD, Reuters indicated, did not respond to a request for comment on the new issuance.
By Collins Adu-Gyamfi
