Finance Minister Dr. Cassiel Ato Forson has announced the government’s readiness to introduce a new commercial paper programme for the Ghana Cocoa Board (COCOBOD), marking a shift from the longstanding syndicated loan arrangement used to finance cocoa purchases.
Speaking at the Ghana-UK Investment Summit 2026, Dr. Forson said transaction advisers engaged to design the new financing structure have completed their work and submitted their report, clearing the way for the issuance of the commercial paper.
According to him, the new model will widen investor participation beyond local banks to include pension funds and non-resident investors. He explained that the initiative is aimed at diversifying COCOBOD’s funding sources while reducing reliance on the annual syndicated loan facility.
To ensure steady financing throughout the cocoa season, the commercial paper will be issued in three tranches. 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 fund the remainder of the season.
He further noted that the programme is structured around an escrow arrangement, where proceeds from cocoa sales will be paid into a dedicated account and used to repay investors directly. The facility will run for eight months and be retired at the end of each season before being reissued for the next cocoa cycle.
Dr. Forson said the initiative represents a clear departure from COCOBOD’s traditional syndicated loan system, which has long provided liquidity for cocoa purchases but has not sufficiently supported value addition in the sector.
He added that the new financing approach is expected to strengthen local processing and industrialisation within the cocoa value chain.
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% of the cocoa purchased locally. Everything is in place and we are ready to launch,” he stated.
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