Ghana is planning to raise $1 billion through domestic cedi-denominated bonds to finance cocoa purchases from farmers ahead of the 2026/2027 season, in a significant overhaul of how the world’s second-largest cocoa producer funds its supply chain. The Ghana Cocoa Board says favorable domestic interest rates—following a series of Bank of Ghana rate cuts that brought the benchmark rate to 14%—make this the right moment to reduce reliance on foreign lenders and dollar funding. The move comes amid serious liquidity stress: the state cocoa buyer PBC has accumulated $60 million in debt, leaving thousands of farmers unpaid for already-delivered produce. Cocoa prices collapsed sharply after their historic 2024 rally, exposing deep structural vulnerabilities in Ghana’s cocoa financing model that this bond issuance is designed to address before the next season begins around August.
Nairametrics
