Cocoa buyers release first tranche of $4bn to COCOBOD for 2025/26 Season
By Praisebell Rosemond Larbi
International buyers of Ghana’s cocoa have begun advancing part of more than 4USD billion to the Ghana Cocoa Board (COCOBOD) for the 2025/2026 crop season, in a move that underscores both the country’s strategic role in the global cocoa trade and the resilience of its new financing framework.
The inflows will not be released in full at once but will be disbursed in tranches over the season, with a significant portion expected before the close of this year.
The early commitments are intended to guarantee supply from Ghana, the world’s second-largest cocoa producer, and reflect heightened competition among global traders for access to beans.
Shift from Syndicated Loans
The advances are the direct result of a financing overhaul introduced by COCOBOD in 2023. Under the new model, international buyers are required to deposit at least 60 per cent of the value of their forward contracts at the start of the season.
This arrangement replaced the long-standing practice of securing an annual syndicated loan from a consortium of international banks, a system that had underpinned Ghana’s cocoa purchases for over three decades.
Under the revised structure, a portion of the buyers’ deposits is channelled through licensed cocoa buying companies (LBCs) to fund purchases directly from farmers, with COCOBOD serving as intermediary.
The shift is aimed at streamlining financing, cutting borrowing costs, and aligning cocoa funding more closely with supply commitments from traders.
Boost for the Cedi and Reserves
Beyond cocoa farmers and LBCs, analysts note that one of the biggest beneficiaries of the inflows will be the Ghanaian cedi.
The deposits are expected to bolster the Bank of Ghana’s international reserves, creating additional buffers against foreign exchange market volatility.
As of July 2025, the Bank of Ghana reported gross international reserves of USD11.1 billion. With the anticipated inflows from cocoa buyers and further support from development partners, the reserves are set to strengthen in the coming months.
Governor of the Bank of Ghana, Dr Johnson Asiama, said the developments should reassure markets of the central bank’s ability to step in decisively to stabilise the currency.
“These inflows send a strong signal to businesses and the market that the Bank of Ghana is well positioned to meet demand when required. As regulator, we have taken the needed actions to ensure that things do not get out of hand,” Dr Asiama said.
He further stressed that Ghana’s macroeconomic fundamentals remain solid and that businesses should maintain confidence both in the outlook for the cedi and in broader measures to improve market liquidity.
