COCOBOD Secures GH¢3.39 Billion To Support Cocoa Purchases From Farmers

Story By: Zainab Ali

The Ghana Cocoa Board (COCOBOD) has secured GH¢3.39 billion, equivalent to approximately US$288 million, through a short-term debt issuance on the domestic market to help finance cocoa purchases from farmers.

Reuters reported on October 8 that the funds are expected to support licensed buying companies responsible for purchasing cocoa from farmers. The financing comes as Ghana works to address funding challenges within its cocoa purchasing system.

The debt issuance, carried out on Monday, attracted an interest rate of 11 per cent and is scheduled to mature in June 2027. The target for the issuance was GH¢4 billion, meaning the amount raised fell short of the intended target.
The financing is part of a wider GH¢16.3 billion domestic financing programme designed to support cocoa purchases during the season. Reuters reported that two additional tranches are expected to be issued during the current season.

Ghana’s cocoa sector has faced financing difficulties following the collapse of its longstanding syndicated loan arrangement with international banks during the 2023/24 season. A subsequent arrangement involving international traders also broke down, contributing to delays in payments to farmers during the previous season.

The new cocoa season opened on September 25, but licensed buying companies had warned that they were reluctant to use their own funds to purchase cocoa while waiting for reimbursement from COCOBOD. Such delays can create uncertainty for farmers who depend on the sale of their harvest to meet household expenses, pay school fees and maintain their farms.

The latest funding is expected to help ease those purchasing constraints. However, its practical impact will depend on how quickly the money reaches buying companies and how efficiently cocoa purchases and payments are handled.

For cocoa-growing communities, the central issue is whether improved financing will translate into more reliable purchasing arrangements and timely payments for farmers.