Gov’t to Raise $1bn Bond to Finance Cocoa Purchases – BoG
The Bank of Ghana (BoG) has announced that government will raise about US$1 billion from the domestic bond market to finance cocoa purchases for the 2026/27 crop season, in a major shift aimed at strengthening cocoa financing and reducing reliance on external borrowing.
Governor Dr Johnson Asiama said the initiative forms part of broader reforms to stabilise cocoa financing, support farmer incomes, and deepen Ghana’s domestic capital market. The plan is also expected to support the ongoing revival of the cocoa sector following earlier adjustments to farmgate prices in 2026.
According to him, the financing will be mobilised through domestic instruments such as commercial paper and commercial notes, drawing on local liquidity to reduce exposure to foreign currency funding pressures.
Speaking at the opening of the 130th Monetary Policy Committee (MPC) meeting in Accra, Dr Asiama described the move as a significant policy shift in cocoa sector financing.
“This is a significant shift to reduce reliance on dollar funding and foreign lenders,” he stated.
He added that the arrangement would help promote price stability, improve sustainability of cocoa incomes, and strengthen long-term debt management frameworks.
The MPC meeting, which is the central bank’s key decision-making forum for monetary policy, is expected to conclude with an announcement on the policy rate, currently set at 14 per cent.
The committee is reviewing recent macroeconomic developments alongside emerging risks, including rising global energy prices and renewed inflationary pressures.
Dr Asiama warned that the ongoing conflict in the Middle East, and resulting volatility in global oil prices, could place additional pressure on transport costs, fuel prices, and inflation dynamics in Ghana. He noted that potential disruptions linked to the Strait of Hormuz remain a key external risk.
He further stated that while Ghana’s macroeconomic position has improved since the previous MPC meeting, recent external shocks are testing the durability of those gains.
On Ghana’s engagement with the International Monetary Fund (IMF), the Governor confirmed that discussions are ongoing following completion of the sixth and final review under the Extended Credit Facility (ECF) programme. He said the Fund had acknowledged improvements in inflation, reserves, exchange rate stability, and debt sustainability.
He also revealed that discussions are advancing toward a 36-month Policy Coordination Instrument (PCI), which is expected to strengthen policy credibility, improve monetary transmission, and support continued reforms without direct financing.
Dr Asiama said the PCI would also reinforce commitments around inflation targeting, liquidity forecasting, and transparency in central bank operations, while supporting efforts to reduce quasi-fiscal pressures and strengthen the Bank of Ghana’s balance sheet.
The Monetary Policy Committee is expected to announce its rate decision after the meeting concludes later this week.
