Accra: The Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has announced a significant shift in the country's cocoa financing strategy by raising $1 billion from the domestic bond market to finance cocoa purchases for the 2026/2027 crop season. This initiative is aimed at strengthening Ghana's cocoa financing system and reducing reliance on foreign borrowing.
According to Ghana Web, the new financing model comes as authorities seek to revitalize the cocoa sector after a reduction in farmgate cocoa prices earlier in 2026. The arrangement is expected to deepen the local capital market, encourage greater participation by institutional investors, and build confidence in the domestic bond market, following the successful resumption of treasury bond issuance earlier this year.
The funding will be mobilized through financial instruments such as commercial paper and commercial notes, leveraging domestic liquidity sources. At the 130th meeting of the Monetary Policy Committee (MPC) at the Bank of Ghana headquarters, Dr. Asiama emphasized the importance of this shift in promoting price stability, supporting sustainable incomes for cocoa farmers, and improving long-term debt management.
The Monetary Policy Committee, the central bank's main decision-making body, began its 130th meeting in May with support from economic advisors, experts, and key stakeholders, including Presidential Advisor on the Economy Seth Terkper, representatives of the Ghana Association of Bankers, and the Association of Ghana Industries.
Dr. Asiama highlighted rising global energy prices and inflationary pressures as key risks. The ongoing conflict in the Middle East has led to increased global crude oil prices, affecting fuel costs, transportation, and consumer prices in Ghana. He noted that these external and domestic challenges could undermine inflation control efforts and impact recent macroeconomic gains.
Ghana's economic conditions have improved significantly since the previous MPC meeting in March, but Dr. Asiama warned that these gains are being tested by global conditions linked to the Middle East conflict. The closure of the Strait of Hormuz has intensified pressure on global oil prices, with inflationary effects felt across economies.
Engagement with the International Monetary Fund (IMF) continues after completing the sixth and final review under the Extended Credit Facility (ECF) program. The IMF acknowledged Ghana's stabilization gains, including lower inflation and improved external reserves. Discussions are progressing towards a 36-month non-financing Policy Coordination Instrument (PCI) arrangement to strengthen reforms and reduce IMF financial support dependence.
The PCI arrangement aims to preserve the signaling benefits of IMF engagement, reinforce domestic reform ownership, and maintain fiscal discipline. It will also support efforts to strengthen the Bank of Ghana's balance sheet, reduce quasi-fiscal activities, and improve transparency and oversight of the Domestic Gold Purchase Programme.