Amanze Chinonye
Ghana’s cocoa regulator has raised 3.39 billion cedis ($288.02 million) from a short-term domestic debt sale, giving it additional liquidity to finance cocoa purchases from farmers during the 2026/27 season.
The commercial paper was issued on Monday through Cocoa Capital PLC, a special-purpose vehicle wholly owned by the Ghana Cocoa Board (COCOBOD), according to the sale results. The securities carry an 11% interest rate and mature in June 2027.
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The amount raised was below the 4 billion cedi target for the first tranche, covering about 85% of the planned issue. The proceeds are expected to enable COCOBOD to release funds to licensed buying companies (LBCs), which purchase cocoa beans from farmers.
Ghana opened its 2026/27 cocoa season on Sept. 25, but cocoa buyers had warned that they could not continue financing purchases with their own funds while waiting for reimbursement from COCOBOD. A shortage of working capital had raised concerns about the pace of bean purchases at the start of the season.
The issuance is the first of three planned debt tranches under a 16.3 billion cedi domestic Cocoa Notes Programme. COCOBOD’s financing vehicle plans to raise 14 billion cedis through commercial paper for short-term cocoa purchases, while a further 2.3 billion cedis is earmarked for medium- to long-term bonds to refinance legacy debt.
The programme marks a shift towards domestic capital markets after COCOBOD struggled to secure traditional external financing. Its longstanding syndicated-loan arrangement with international banks collapsed during the 2023/24 season, while a later arrangement involving international cocoa traders also broke down, contributing to payment delays to farmers in the previous season.
Under the financing structure, repayment obligations are supported by receivables from selected cocoa forward-sale contracts assigned to Cocoa Capital. The proceeds are to be channelled through designated ring-fenced accounts and applied according to a prescribed payment structure, according to COCOBOD.
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Cocoa Capital’s financing programme allows commercial paper with maturities ranging from 15 to 270 days and is specifically designed to finance cocoa beans delivered by licensed buying companies. The wider programme is intended to strengthen COCOBOD’s finances while providing a more predictable source of working capital for the cocoa sector.
Ghana, the world’s second-largest cocoa producer, has been seeking to stabilise financing for the sector after funding constraints disrupted purchases and payments.
The latest debt sale provides an immediate source of liquidity, while the planned subsequent tranches are expected to provide additional funding during the current crop season.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
