The Chief Executive of Ghana Cocoa Board (COCOBOD), Dr. Ransford Abbey, has disclosed that modalities for a new funding model for Ghana’s cocoa sector are nearing completion ahead of its implementation in the 2026/2027 crop season.
He said the new model marks a major shift in Ghana’s cocoa financing strategy and is aimed at ensuring price stability and sustainable income for cocoa farmers.
Dr. Abbey made the disclosure during a high-level panel discussion on Pre-Export Liquidity and Long-Term Capital at the Africa Cocoa Finance and Investment Forum (ACFIF 2026), held at the London Stock Exchange.
He explained that for over three decades, Ghana’s cocoa sector has depended on syndicated loans backed by forward cocoa sales to finance annual crop purchases. According to him, while the system has ensured liquidity, it has also required between 70% and 92% of cocoa output to be collateralised to offshore financiers, making a policy shift necessary.
“The new funding model will come with a new pricing mechanism, which will involve periodic reviews, maybe quarterly, and will be used for the entire crop,” he said.
Dr. Abbey noted that the new model will focus on mobilising capital through instruments such as commercial paper and commercial notes, while also tapping into domestic liquidity, including institutional investors.
He further explained that the reform will maintain the policy of paying farmers 70% of the Free-On-Board (FOB) price, while introducing periodic price reviews to reflect changes in global cocoa prices and exchange rates. This, he said, is to balance farmer income stability with the financial sustainability of the sector.
The COCOBOD Chief Executive added that the model is also expected to expand participation in the cocoa economy by improving financing access for local processors and indigenous Ghanaian companies, thereby strengthening value retention in the country.
He expressed confidence in Ghana’s financial ecosystem to support the transition, citing improving macroeconomic conditions and growing investor interest in structured financial instruments.
Dr. Abbey also acknowledged the need for clarity among stakeholders, particularly Licensed Buying Companies (LBCs) and investors, regarding the structure and scale of funding under the new model.
He indicated that a detailed prospectus outlining participation opportunities for financial institutions and investors is being finalised, and will be presented to stakeholders ahead of the 2026/2027 crop season.
He expressed optimism that the new framework would help better shield cocoa farmers’ incomes from global price volatility.
The Africa Cocoa Finance and Investment Forum (ACFIF) 2026 was convened by Cocoa Trade and Invest Africa in partnership with the International Cocoa Organization (ICCO) and the Cocoa Marketing Company UK, bringing together policymakers, investors, and industry players to explore reforms and unlock investment in Africa’s cocoa sector.
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