Accra: The proposed Ghana COCOBOD Bill, 2026, is set to usher in a new financing model for Ghana's cocoa sector, with the Ghana Cocoa Board (COCOBOD) preparing to raise about GHS13 billion from the local market this month to finance cocoa purchases and ease its debt burden. The move will mark a major shift from the board's long-standing reliance on syndicated loans.
According to Ghana Web, the Chief Executive Officer of COCOBOD, Dr. Randy Abbey, announced that the board would issue 270-day commercial notes as part of a broader funding strategy under the new legislative framework. Dr. Abbey emphasized the necessity of this new approach, citing financial pressures on the board and challenges related to traditional financing arrangements.
'We need to raise the money this month. We are hopeful that we will be able to raise the money and have an enduring funding policy for cocoa,' Dr. Abbey expressed at a media sensitization programme on the proposed Ghana COCOBOD Bill, 2026. The financing plan is part of broader reforms within the proposed bill, aiming to reshape the management and financing of Ghana's cocoa industry.
Dr. Abbey explained that COCOBOD would avoid borrowing the full amount required to purchase the crop at once, opting instead to raise about half of its annual financing requirement and recycle the funds within the 270-day period. 'These 270-day commercial notes will be what we will use, so we are raising the money domestically,' he stated.
Local pension funds are expected to play a crucial role in this domestic financing programme, with more than GHS100 million available, according to Dr. Abbey. This new financing arrangement is also anticipated to aid COCOBOD in managing approximately GHS26 billion in annual debt obligations from deferred cocoa bills for 2026, 2027, and 2028.
Dr. Abbey indicated the board's intention to refinance part of the outstanding debt over five years, alleviating the annual repayment pressure. 'Instead of taking GHS26 billion and paying interest on GHS26 billion, we will take, let's say, GHS13 billion, turn it around twice within those 270 days, and then pay it back. This is how we intend to fund the crop,' he explained.
The board also plans to issue five-year bonds annually to address the outstanding cocoa bills. Dr. Abbey noted, 'What we believe will be the right thing to do is to refinance these cocoa bills for a longer time, say, five years. That will mean that we will have less pressure. We will not have to find GHS26 billion every year for the next three years. So, we will then have to pay a smaller amount over five years.'
The domestic commercial notes and bonds will be integral to the new funding model, and a special purpose vehicle will pool human resources and technical expertise from different sectors to support cocoa financing and operations. These reforms coincide with efforts by Ghana and C´te d'Ivoire to strengthen cooperation in the cocoa sector, with an agreement to align their cocoa seasons starting this September.