Government Launches Cocoa Bond Financing Scheme

Accra, Feb. 12, – The Government has introduced a domestic "Cocoa Bond" financing scheme to replace the collapsed syndicated loan and buyer-financed models for cocoa purchases, addressing critical liquidity challenges in the sector.

Finance Minister Dr. Cassiel Ato Baah Forson announced the initiative at a press briefing, explaining that COCOBOD would raise funds through domestic bonds to create a revolving fund for direct farmer purchases, repaid from cocoa proceeds within each crop year.

Crisis Background

The 2024–2025 season saw:

• Syndicated loan collapse after 32 years

• Output shortfall: 432,145 tonnes vs projected 800,000 tonnes (45% deficit)

• Price crash: US$7,200/tonne to US$4,100/tonne

• US$1B+ losses, 333,767 tonnes contract rollovers

• Farmer payment arrears

New Model Benefits

• Financial independence from volatile buyer financing

• Revives indigenous Licensed Buying Companies

• Boosts local processing (50% target from 2026–2027)

• Job creation through direct sales to local processors

COCOBOD balance sheet restructuring ensures readiness for domestic market entry, Dr. Forson assured.

Licensed Cocoa Buyers Association President Samuel Adimado welcomed the reform as "a new approach for better results," urging stakeholder inclusion and farmer patience during implementation.

GHBUSS

Feb. 12, 2026