The Ghana Cocoa Board (COCOBOD) says its decision to mobilise $1.4 billion from domestic investors for the 2026/2027 cocoa season is a deliberate financing strategy and not an indication that the Board has been locked out of international capital markets.
The proposed facility, estimated at about GH¢16.3 billion, is expected to provide funding for cocoa purchases, help settle outstanding financial obligations and offer greater stability in financing the sector.
Deputy Chief Executive Officer of COCOBOD in charge of Finance and Administration, Ato Boateng, said the Board has had opportunities to return to the international market but has instead chosen to adopt a different approach based on its experience with external financiers.
He disclosed that several international banks had approached COCOBOD to discuss a possible return to international borrowing since he assumed office more than 18 months ago.
Mr Boateng explained that although a financial crisis had previously contributed to COCOBOD’s withdrawal from international markets, the situation had changed, with international lenders subsequently returning to engage the Board.
“Since I took this position over 18 months ago, I’ve had a lot of international banks coming to Cocoa Board to talk about Cocoa Board re-entering the market at the international level. It is not that we are forced out of the market. Yes, we had a crisis that pushed us out of the market. But beyond the crisis, they came back. And then, given what we also saw, we changed strategy,” he said.
He said his reluctance to rely again on some international financiers was influenced by their response to COCOBOD’s previous financial difficulties.
“I don’t like fair-weather friends. You don’t run away from Cocoa Board when we have difficulties, and then when we have weathered those difficulties, then you show up,” Mr Boateng said.
He further explained that COCOBOD’s experience with the buyer-financed model had exposed weaknesses in relying heavily on international market players to support cocoa purchases.
Under the model, international cocoa buyers provided financing through COCOBOD to Licensed Buying Companies (LBCs), which used the funds to purchase cocoa beans from farmers.
According to Mr Boateng, the arrangement became problematic when international cocoa prices declined and some of the financiers withdrew their support, affecting the flow of funds available for bean purchases.
“When the prices dropped, these international guys moved away from Ghana. They stopped funding the beans. And then they created the problem that we saw,” he said.
The experience, he said, prompted COCOBOD to reconsider its financing structure and place greater emphasis on domestic sources of funding rather than depending predominantly on international lenders and buyers.
“Would I place my financial strategy on boys and girls that I cannot really rely on?” he asked.
Mr Boateng said the revised financing approach was subsequently presented to the Ministry of Finance, which submitted it to Cabinet. Following consideration, Cabinet directed COCOBOD to explore domestic financing options for its cocoa purchasing operations.
The move comes after the collapse of COCOBOD’s long-standing syndicated loan arrangement with international banks during the 2023/2024 cocoa season. A separate arrangement involving international trading houses to pre-finance cocoa purchases also failed during the subsequent season.
Despite the financing challenges, COCOBOD recorded a significant increase in operating revenue, which rose from GH¢15.8 billion in 2024 to GH¢48.6 billion in 2025.
Its net profit margin also improved substantially, moving from a negative 35.1 percent in 2024 to 10.4 percent in 2025.
COCOBOD expects the proposed $1.4 billion domestic financing programme to provide the resources needed to purchase cocoa during the 2026/2027 season while also addressing outstanding obligations.
The new approach therefore represents a shift in how Ghana’s cocoa purchases are financed, with COCOBOD seeking to strengthen domestic financing capacity and reduce its exposure to disruptions arising from changes in international lending and cocoa-buying arrangements.
Story by Freedom Etsey Lavoe