Ghana Cocoa Board (COCOBOD) has announced plans to introduce a new financing framework for Ghana’s cocoa sector beginning with the 2026/2027 crop season, in a move aimed at improving price stability and securing sustainable earnings for cocoa farmers.
Chief Executive of COCOBOD, Randy Abbey, revealed the development during a panel discussion on pre-export liquidity and long-term capital at the Africa Cocoa Finance & Investment Forum 2026 held at the London Stock Exchange.
Dr Abbey explained that Ghana’s cocoa industry has depended for more than 30 years on syndicated loans supported by forward cocoa sales to finance annual purchases from farmers.
He noted that although the arrangement had consistently provided liquidity for the sector, it also meant a large proportion of Ghana’s cocoa production had to be committed as collateral to offshore financiers.
“While effective in providing liquidity, it also required between 70 per cent and 92 per cent of the cocoa crop to be collateralised to offshore financiers, underscoring the urgent need for a paradigm shift in policy,” he stated.
According to him, the proposed funding structure will introduce a revised pricing system with periodic reviews, potentially quarterly, to determine producer prices throughout the crop season.
He added that the model would draw financing from instruments such as commercial paper and commercial notes while also tapping into domestic liquidity and institutional investor support.
Dr Abbey further indicated that the reforms would preserve the policy of paying cocoa farmers 70 per cent of the Free-On-Board (FOB) price, while allowing adjustments to reflect fluctuations in global cocoa prices and exchange rates.
He said the overarching goal of the reforms is to balance income security for farmers with the long-term financial sustainability of Ghana’s cocoa industry.
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Source: www.myjoyonline.com