Finance Minister Dr. Cassiel Ato Forson has announced that government is ready to roll out a new commercial paper programme for the Ghana Cocoa Board (COCOBOD), replacing the longstanding syndicated loan arrangement used to finance cocoa purchases.
Speaking at the Ghana-UK Investment Summit 2026, Dr. Forson disclosed that transaction advisers tasked with designing the financing structure have completed their work and submitted their report, paving the way for the programme’s launch.
According to the Finance Minister, the new financing model is intended to broaden investor participation by attracting not only local banks but also pension funds and non-resident investors. He explained that the move is aimed at diversifying COCOBOD’s funding sources and reducing dependence on the annual syndicated loan facility.
Under the new arrangement, the commercial paper will be issued in three tranches to ensure a steady flow of financing throughout the cocoa season. The first tranche will cover up to two months of cocoa purchases, the second will finance an additional three months, while the final tranche will cater for the remainder of the season.
Dr. Forson further revealed that the programme will operate through an escrow mechanism, where proceeds from cocoa sales will be deposited into a dedicated account and used to repay investors directly.
He explained that the facility will have an eight-month lifespan and will be retired at the end of each cocoa season before being reissued for the next cycle.
The Finance Minister described the initiative as a significant shift from COCOBOD’s traditional syndicated loan structure, which has long served as the primary source of liquidity for cocoa purchases.
He noted that the new financing approach is expected to support value addition, local processing and industrialisation within Ghana’s cocoa sector.
“As the cocoa is being purchased through our own resources and domestic bonds, and with close collaboration between the Government of Ghana and COCOBOD, we will be able to process a minimum of 50 per cent of the cocoa purchased locally. Everything is in place and we are ready to launch,” Dr. Forson stated.
The new programme forms part of broader efforts to strengthen Ghana’s cocoa value chain, enhance local processing capacity and create greater value from one of the country’s key export commodities.
Source: Citinewsroom
