Ghana Turns to Domestic Debt Market for Cocoa Financing
Farmers in Ghana prepare cocoa beans for export, showcasing the country’s key role in global chocolate production.
Ghana’s cocoa regulator, Cocobod, has raised $288 million through domestic securities to finance cocoa purchases and ease liquidity constraints among licensed buying companies. The securities, which were issued recently, offer an 11% yield and will mature on June 28, 2027. The proceeds represent approximately 85% of the regulator’s initial $340 million fundraising target. The transaction launched a broader financing program worth up to $1.4 billion, combining short-term funding for the 2026/2027 cocoa season with longer-term debt restructuring. The shift follows difficulties with earlier models. During the 2023/2024 season, delayed syndicated financing and a production shortfall disrupted cocoa deliveries. A subsequent system relying on advance payments from international cocoa traders also proved unsustainable. The new domestic funding model is intended to strengthen liquidity across the cocoa supply chain, with repayment supported by proceeds from designated forward cocoa sales contracts.