COCOBOD Signals New Funding Model for 2026/27 Cocoa Season
By Maame Efua Kwaduah
The Chief Executive Officer the 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 rollout for the 2026/2027 crop season.
According to him, the reform represents a major shift in cocoa financing and is aimed at ensuring price stability and sustainable income for farmers across the country.
Dr. Abbey made the announcement 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 and organised by Cocoa Trade and Invest Africa in partnership with the International Cocoa Organization (ICCO) and the Cocoa Marketing Company UK.
He explained that for more than three decades, Ghana’s cocoa sector has depended on syndicated loans backed by forward sales of cocoa to finance annual purchases. While this system has provided liquidity, he noted that it has also required between 70% and 92% of cocoa output to be used as collateral to offshore financiers, making reform 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.
According to him, the new framework will mobilise capital through instruments such as commercial paper and commercial notes, while also tapping into domestic liquidity sources, including institutional investors.
Dr. Abbey further stated that the reform will maintain the policy of paying farmers 70 per cent of the Free-On-Board (FOB) price. However, it will introduce periodic price reviews to reflect changes in global cocoa prices and exchange rates, with the aim of balancing farmer income stability with sector sustainability.
He added that the model will expand participation in the cocoa economy by improving financing access for local processors and indigenous Ghanaian companies, thereby increasing value retention within Ghana.
The COCOBOD Chief Executive expressed confidence in Ghana’s improving macroeconomic environment and growing investor interest in structured financial instruments to support the transition.
He also acknowledged the need for clearer communication with stakeholders, particularly Licensed Buying Companies (LBCs) and investors, regarding the structure and scale of funding under the new system.
Dr. Abbey indicated that a detailed prospectus outlining participation opportunities for financial institutions and investors is being finalised and will be presented ahead of the opening of the 2026/2027 cocoa season.
He expressed optimism that the new model will better protect cocoa farmers’ incomes from global price volatility in the years ahead.
