The Ghana Cocoa Board (COCOBOD) has issued and listed its highest-ever cedi-denominated instrument on the Ghana Stock Exchange, raising GH¢16.30 billion through a landmark Domestic Cocoa Notes Programme that fundamentally reshapes how Africa’s second-largest cocoa producer finances its crop purchases.
The programme, structured through COCOBOD’s wholly owned subsidiary Cocoa Capital PLC, comprises GH¢14 billion in commercial paper to fund short-term liquidity requirements for the 2026/27 crop season and a GH¢2.30 billion bond to restructure existing legacy debt. The listing ceremony at the GSE on Wednesday, October 14, 2026, marked a decisive break from nearly a century of reliance on offshore syndicated loans and government budgetary allocations.
The inaugural issuance attracted approximately GH¢3.59 billion in investor bids at an interest rate of 11 per cent per annum, a strong signal of domestic institutional appetite for cocoa-backed securities. The milestone adds to the GSE’s impressive performance, with GH¢6.79 billion mobilised from January 2025 to October 2026 and GH¢14.5 billion paid in dividends during the same period.
A Century of External Dependence Ends
Historically, the purchase of cocoa beans — the backbone of Ghana’s economy and a critical source of foreign exchange — has been financed through foreign banks, with minimal exposure by indigenous banks. In earlier decades, it was funded from budgetary allocations. For over three decades since 1992, COCOBOD relied on annual pre-export syndicated loans from international money market lenders, a system that exposed the board to mounting borrowing costs and currency risk.
That model came at a steep price. COCOBOD paid more than $150 million in interest alone on the syndicated facility for the 2023/24 crop season. The board stopped raising the syndicated loan for the 2024/25 season for the first time since 1992, pivoting to a buyer-financed model that required global traders to pay upfront for cocoa shipments. But weak global demand and a drop in prices to two-year lows meant traders were reluctant to make large upfront payments, leading to a build-up of unsold cocoa and payment delays that left some farmers unpaid — exposing the fragility of the interim model.
“This is the first of its kind: a new model of cocoa financing that is not based on government budget allocation, an offshore syndicated loan or buyer pre-finance,” said COCOBOD Chief Executive Dr Randy Anertey Abbey. “For almost a century, cocoa trade in Ghana has been financed through these different models.”
A Deliberate Transition to Domestic Capital
The Domestic Cocoa Notes Programme represents a strategic pivot towards mobilising domestic liquidity. Dr Abbey described it as “a deliberate transition towards a cedi-denominated financing model” that reduces reliance on offshore borrowing and establishes a stronger connection between Ghana’s capital market and one of its most important productive sectors.
“This transition is more than replacing one source of funding with another,” Dr Abbey said. “It is about taking advantage of the macroeconomic environment, the domestic capital market, broadening COCOBOD’s financing options, diversifying funding risk and establishing a flexible platform capable of responding to the seasonal and long-term requirements of the cocoa industry.”
Financial analysts say the model would make Ghana more self-reliant in funding cocoa purchases, prevent capital flight and preserve value within the country.
The programme has already received approval from the Securities and Exchange Commission, with commercial paper to be issued in tranches aligning with funding requirements and market conditions. Repayment obligations will be supported by receivables from selected executed cocoa forward sales contracts assigned to Cocoa Capital PLC, with proceeds flowing through designated ring-fenced accounts.
The bookrunners for the programme are Absa Bank Ghana Ltd, CalBank PLC, Fincap Securities Ltd, GCB Bank PLC, One Africa Securities Ltd and Stanbic Bank Ghana Ltd.
New Legal Framework Underpins Reform
The financing innovation is anchored in the Ghana Cocoa Board Act, 2026, passed by Parliament on July 30, 2026, which consolidates fragmented cocoa laws into a single framework and provides statutory backing for key institutions. The Act guarantees cocoa farmers a minimum of 70 per cent of the Free on Board price, requires at least 50 per cent of cocoa beans to be processed locally, and establishes a cocoa tribunal to address infractions in the sector.
The legislation also introduces a Cocoa Farmers Pension Scheme, an Educational Trust Scheme, a Cocoa Sector Debt Sinking Fund, and a Cocoa Stabilisation and Diversification Fund to cushion farmers against price shocks and support long-term sustainability. Government is also converting COCOBOD’s legacy debt owed to the Ministry of Finance and Bank of Ghana into equity, while cocoa road contracts are being transferred to the Ministry of Finance to enable COCOBOD to focus on its core mandate.
Dr Abbey assured investors that funds raised would be applied strictly to cocoa purchases and core operations, grounded in the new Act. “Besides the DDEP Cocoa Bonds, the proceeds of the issuance will not, and cannot, be used to pay other legacy debts of COCOBOD,” he stated.
Producer Price Rises for New Season
The financing programme coincides with a new producer price for the 2026/27 crop season. COCOBOD has adjusted the price from GH¢41,392 to GH¢42,400 per tonne, an increase of GH¢1,008 or about 2.4 per cent. The realised FOB price for the season is US$2,650 per tonne, meaning the new producer price represents 71.18 per cent of the realised FOB value — exceeding the 70 per cent floor guaranteed by the new Act.
“The success of this financing supports our broader commitment to safeguarding farmer incomes, ensuring timely payments and placing the cocoa industry on a more sustainable financial footing,” Dr Abbey said. “Therefore, the cocoa farmer is at the heart of this transaction.”
Stakeholders Hail Collaborative Effort
The Board Chairman of Cocoa Capital PLC, John Awuah, said the Special Purpose Vehicle goes beyond raising funds for the immediate purchasing season. “The SPV has been established to provide a structured financing mechanism capable of addressing the sector’s funding requirements while maintaining transparency and accountability,” he said, stressing that success would depend on disciplined execution and meeting financial obligations.
Kwamina Asomaning, President of the Ghana Association of Banks and Chief Executive of Stanbic Bank Ghana, highlighted the importance of collaboration among banks, capital markets and domestic investors in financing productive sectors. He noted that timely financing would support cocoa purchases and strengthen the link between domestic savings and local economic activity.
GSE Managing Director Abena Amoah welcomed the transaction as a demonstration of how the domestic capital market could mobilise resources for national development, revealing that the exchange had paid GH¢14.50 billion in dividends to investors over 22 months.
Dr Abbey expressed appreciation to the banks, pension funds, fund managers and institutional investors that participated in the inaugural series, saying their participation demonstrated that Ghanaian institutional investors were prepared to support well-structured, transparent and commercially sound financing solutions. He extended an open invitation to investors who could not participate in the maiden issuance to engage with Cocoa Capital PLC and the transaction team for subsequent issuances.
The COCOBOD Chief Executive also acknowledged the contribution of the Ministry of Finance, the Bank of Ghana, the Securities and Exchange Commission, the GSE, the Central Securities Depository, SEM Capital as Transaction Adviser, Sory@Law, KPMG, PwC, Beacon Ratings, and the Board of Cocoa Capital PLC.
A Model for National Development
The successful listing marks the beginning of what officials hope will be a sustainable domestic financing platform for Ghana’s cocoa sector. As Dr Abbey noted: “The success of this first series gives us confidence that Ghana can build a sustainable domestic financing platform for cocoa. It also reminds us that the long-term strength of the platform will depend on our continued commitment to sound financial management, effective governance and the productive use of the funds entrusted to us.”
With the 2026/27 crop season underway and the producer price set, all eyes will be on COCOBOD’s ability to translate this financial innovation into timely payments for the more than 800,000 farmers who depend on cocoa for their livelihoods — and whose trust is essential to the long-term success of the new model.
