The Ghana Cocoa Board has announced that a new cocoa sector funding model is nearing completion, with implementation scheduled for the 2026/2027 crop season as part of efforts to transform financing and improve farmer income stability.
Chief Executive of COCOBOD, Dr Ransford Abbey, said the reform represents a major shift in Ghana’s cocoa financing architecture, aimed at ensuring price stability and more sustainable earnings for cocoa farmers.
He made the disclosure during a high-level panel discussion on Pre-Export Liquidity and Long-Term Capital at the Africa Cocoa Finance & Investment Forum 2026 in London.
Dr. Abbey explained that Ghana’s cocoa sector has for decades depended on syndicated loan arrangements backed by forward sales of cocoa, with between 70% and 92% of annual output typically pledged to offshore financiers.
He described the structure as increasingly restrictive, necessitating a new financing approach that reduces dependency on external collateralisation while strengthening domestic capital mobilisation.
According to him, the upcoming model will introduce alternative funding instruments, including commercial paper and commercial notes, while leveraging domestic liquidity and institutional investors.
He also indicated that Ghana will maintain the policy of paying farmers 70% of the Free-On-Board (FOB) price, but with a new pricing framework that allows for periodic — possibly quarterly — reviews to reflect global cocoa prices and exchange rate movements.
Dr. Abbey said the objective is to balance farmer income protection with the financial sustainability of the cocoa sector.
The new model is also expected to expand participation in the cocoa value chain by improving financing access for local processors and Ghanaian-owned companies, thereby strengthening domestic value retention.
He expressed confidence in Ghana’s improving macroeconomic environment and growing investor appetite for structured financial instruments to support the transition.
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However, he noted the need for clear communication with stakeholders, particularly Licensed Buying Companies (LBCs) and investors, on the structure and scale of funding under the new system.
A detailed prospectus outlining participation opportunities for financial institutions and investors is currently being finalised and is expected to be presented ahead of the 2026/2027 crop season.
The Africa Cocoa Finance and Investment Forum brought together policymakers, investors and industry stakeholders, including International Cocoa Organization and Cocoa Marketing Company UK, to discuss reforms aimed at unlocking investment and strengthening Africa’s cocoa economy.
