The Government of Ghana has launched a GHS16.3 billion Domestic Cocoa Notes Programme through Cocoa Capital PLC, a fully owned subsidiary of the Ghana Cocoa Board (COCOBOD). The move aims to support cocoa purchases for the 2026/27 crop season and to improve the financial health of the cocoa sector.
Of the total amount, GHS14 billion will be raised through Commercial Paper (CP). This short-term financing will cover liquidity needs specifically for buying cocoa during the upcoming crop season. The remaining GHS2.3 billion will come from issuing medium-to-long-term bonds. These bonds will be used to refinance existing legacy debt held by COCOBOD.
The Finance Ministry described the programme as part of the government’s cocoa sector reset agenda. It introduces a new financing model designed to ensure cocoa purchases happen on time and to deal with outstanding debt from previous years.
The Commercial Paper will be issued in several tranches over the coming weeks. This phased approach will correspond with the timing of cocoa purchases and prevailing market conditions.
Cocoa is a major export commodity for Ghana and a significant source of income for many farmers. The sector has faced financial challenges in recent years, including delays in payments to farmers and a buildup of debt. The new Domestic Cocoa Notes Programme aims to create a more sustainable financial framework.
Cocoa Capital PLC was established to help manage the sector’s financial operations more efficiently. By raising funds through the domestic capital market, the company is expected to reduce reliance on external borrowing.
The GHS16.3 billion programme is one of the largest domestic bond issues in the cocoa sector to date. It reflects the government’s effort to stabilise the sector’s finances while maintaining a steady supply of cocoa for export.
Issuing bonds and commercial paper locally may also encourage more participation from Ghanaian investors in supporting the cocoa industry.
The Finance Ministry’s statement did not provide details on the interest rates or maturity periods for the bonds and commercial paper. It also did not specify how the repayment schedules will be managed.
The success of this financing plan will depend on market response and the government’s ability to manage the sector’s financial obligations effectively.
As the cocoa season approaches, all eyes will be on how this new funding model impacts the purchasing cycle and the overall health of Ghana’s cocoa industry.
According to 3News.
