By Dennis Awuni | Democracy News
The Ghana Cocoa Board (COCOBOD) has raised approximately GH¢16.3 billion through a domestic financing programme listed on the Ghana Stock Exchange (GSE), in a move aimed at funding cocoa purchases and reducing the board’s reliance on foreign syndicated loans.
The Domestic Cocoa Notes Programme comprises GH¢14 billion in commercial paper and a GH¢2.30 billion bond, with proceeds intended to support cocoa purchases beyond the 2026/2027 crop season and finance the board’s core operations.
The initiative, issued through Cocoa Capital PLC, a wholly owned subsidiary of COCOBOD, is designed to mobilise domestic capital to meet the financing needs of Ghana’s cocoa sector.
At the listing ceremony held on Wednesday, October 14, 2026, COCOBOD Chief Executive Dr Randy Abbey described the programme as a significant change in the country’s cocoa financing arrangements.
He said the new model would broaden the board’s financing options, mobilise funds from domestic investors and strengthen the connection between Ghana’s capital market and the cocoa industry.
According to Dr Abbey, the inaugural issuance attracted approximately GH¢3.59 billion in investor bids at an interest rate of 11 per cent per annum.
He explained that proceeds from the first series would provide working capital for cocoa purchases during the 2026/2027 crop season, helping ensure that funds are available to purchase cocoa beans throughout the year.
“The cocoa farmer is at the heart of this transaction,” Dr Abbey said, adding that the initiative was intended to support farmer incomes and timely payments.
COCOBOD seeks to reduce reliance on foreign loans
Dr Abbey said the domestic financing programme represented a departure from traditional arrangements that relied heavily on foreign banks, offshore syndicated loans, buyer pre-financing and government budgetary allocations.
He explained that raising funds in cedis would help diversify the board’s funding sources and establish a more direct link between domestic savings and cocoa production.
According to the COCOBOD chief executive, the programme is also intended to provide a flexible financing platform capable of responding to the seasonal and long-term needs of the cocoa industry.
He assured investors that funds raised would be used strictly for their designated purposes, including cocoa purchases and COCOBOD’s core operations.
Dr Abbey further stated that, apart from the Domestic Cocoa Notes Programme’s specific provisions relating to DDEP Cocoa Bonds, the proceeds would not be used to settle the board’s other legacy debts.
He said the arrangement was consistent with the COCOBOD Act, 2026, which he cited as requiring the institution to concentrate on its core functions.
Cocoa Capital PLC outlines accountability measures
The Board Chairman of Cocoa Capital PLC, John Awuah, said the special purpose vehicle had been established to provide a structured financing mechanism for the cocoa sector beyond the immediate purchasing season.
He stressed that the programme’s success would depend on disciplined execution, transparency and the ability to meet its financial obligations.
Dr Abbey also pledged that COCOBOD would maintain open communication with investors, comply with reporting requirements and honour its debt-service commitments.
He acknowledged the contributions of the Ministry of Finance, the Bank of Ghana, the Securities and Exchange Commission, the Ghana Stock Exchange, banking partners, transaction advisers and institutional investors involved in the issuance.
The COCOBOD chief executive encouraged investors who did not participate in the inaugural issuance to engage with Cocoa Capital PLC and consider subsequent offerings.
Banks and GSE welcome domestic financing initiative
President of the Ghana Association of Banks and Chief Executive of Stanbic Bank Ghana, Kwamina Asomaning, highlighted the importance of collaboration among commercial banks, capital markets and domestic investors in financing productive sectors of the economy.
He said timely financing for cocoa purchases could strengthen the link between domestic savings and economic activity.
GSE Managing Director Abena Amoah also welcomed the transaction, describing it as an example of how Ghana’s domestic capital market could mobilise resources for national development.
The programme is expected to expand COCOBOD’s access to domestic financing while providing institutional investors with an opportunity to participate in funding one of Ghana’s major agricultural export industries.
Democracy News will continue to follow developments in Ghana’s cocoa sector, including the implementation of the domestic financing programme and its implications for cocoa purchases, farmers and the wider economy.
