Some international buyers of Ghana’s cocoa have begun advancing part of more than $4 billion to COCOBOD for cocoa bean purchases for the 2025/2026 crop season.
According to JoyBusiness sources, the full amount will not be released at once but disbursed in tranches, with a significant portion expected before the end of the year. The arrangement is designed to secure COCOBOD’s commitment to meet bean supply obligations.
COCOBOD’s New Financing Model
In 2023, COCOBOD rolled out a new funding model for cocoa purchases, which requires international buyers to deposit at least 60% of the value of their forward contracts at the beginning of the season.
This model replaced the three-decade-old pre-export syndicated loan facility from international banks. Under the new arrangement, part of the traders’ deposits is channeled through licensed cocoa buying companies (LBCs), which are financed by the traders to purchase beans, with COCOBOD serving as the intermediary.
Boost For The Cedi
Analysts believe the cedi will be among the biggest beneficiaries of the inflows, as they are expected to significantly improve the Bank of Ghana’s international reserves.
As of July, the Bank of Ghana reported reserves of $11.1 billion in its Economic and Financial Data.
Speaking to JoyBusiness’s George Wiafe, Governor of the Bank of Ghana, Dr. Johnson Asiama, said the inflows should reassure the market of the central bank’s capacity to intervene when necessary to meet the demands of businesses and commercial banks.
“This development demonstrates a favourable outlook for the cedi despite recent pressures. As regulator, we have taken the needed actions to ensure that things do not get out of hand,” Dr. Asiama stated.
He stressed that Ghana’s macroeconomic fundamentals remain solid and should boost business confidence in the cedi’s stability and the ongoing measures to strengthen market liquidity.
JoyBusiness has also gathered that Ghana could receive additional inflows from development partners, which would further consolidate the country’s external reserves.
Source: JoyBusiness
