COCOBOD plans new cocoa financing model to cut dependence on foreign syndicated loans

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The Ghana Cocoa Board (COCOBOD) has announced plans to introduce a new funding framework for the cocoa sector from the 2026/2027 crop season, in a move aimed at reducing the country’s long-standing dependence on offshore syndicated loans.
Speaking at the Africa Cocoa Finance & Investment Forum 2026 at the London Stock Exchange, COCOBOD Chief Executive, Dr Randy Abbey, said the current financing arrangement—used for over 30 years—has heavily relied on forward cocoa sales backed by foreign lenders to finance annual cocoa purchases.
According to him, although the syndicated loan structure has ensured liquidity for cocoa purchases, it has also forced Ghana to commit a substantial portion of its cocoa production to external financiers.
Dr Abbey revealed that between 70 and 92 per cent of Ghana’s cocoa output is often used as collateral under the current arrangement, stressing the need for a major policy shift to secure the long-term sustainability of the sector.
Under the proposed model, COCOBOD intends to mobilise funds through commercial paper, commercial notes and domestic investment instruments, while tapping into local liquidity and institutional investors.
He explained that the new framework would also introduce a revised pricing mechanism that could see cocoa producer prices reviewed periodically, possibly on a quarterly basis, throughout the crop season.
Despite the reforms, Dr Abbey said government’s policy of paying farmers 70 per cent of the Free-On-Board (FOB) price would remain intact, while allowing producer prices to better reflect movements in global cocoa prices and exchange rate fluctuations.
He noted that the initiative is designed to protect cocoa farmers from price volatility while ensuring financial sustainability within the cocoa sector.
The COCOBOD boss further indicated that the new model is expected to expand opportunities for indigenous Ghanaian firms and local cocoa processors by improving access to financing and increasing value retention within the country.
Dr Abbey also assured stakeholders that a detailed prospectus explaining the financing structure and participation opportunities would be made public before the commencement of the 2026/2027 cocoa season.
The Africa Cocoa Finance & Investment Forum was organised by International Cocoa Organization in collaboration with Cocoa Trade and Invest Africa and the UK office of the Cocoa Marketing Company to discuss investment and reforms within Africa’s cocoa industry.