COCOBOD set to raise $1.4 billion locally for cocoa purchases

Deputy CEO of the Ghana Cocoa Board (COCOBOD) in charge of Finance and Administration, Ato Boateng, says the Board will rely more on domestic financing to fund cocoa purchases for the 2026/2027 season.

COCOBOD plans to raise $1.4 billion, equivalent to about GH¢16.3 billion, from domestic investors.

The move represents a shift from COCOBOD’s traditional reliance on foreign borrowing to finance cocoa purchases.

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Speaking on Channel One TV on Monday, September 28, 2026, Ato Boateng said the relative stability of the cedi had influenced the decision.

“This change is as a result of the currency stability that we want in the country. Historically, the syndication brought in a lot of money and given the new macro environment, the cedi-dollar exchange rate would want to stabilise it,” he said.

He explained that domestic financing would reduce the large dollar inflows and outflows associated with COCOBOD’s foreign currency financing.

“So a stabilising effect would be to do domestic funding so that you don’t have a lot of chunk dollars coming in at the same chunk going out,” he added.

According to him, the fall in interest rates has also made domestic borrowing more attractive for the Board.

“Secondly, the macro environment is very good. The interest rate environment has gone down. So this is the right time to sort of use the domestic resources to finance the purchase of the crop,” he said.

The $1.4 billion is, however, expected to help COCOBOD buy cocoa for the new season, settle outstanding obligations and support the operations of the cocoa sector.

COCOBOD has traditionally used foreign currency loans to pre-finance cocoa purchases.

The funds help the Board pay cocoa farmers promptly, while the cocoa is later sold on the international market in US dollars.

However, changes in the cedi-dollar exchange rate can affect the cost of servicing these foreign currency loans and the overall financial position of COCOBOD.

The latest financing plan comes after an improvement in COCOBOD’s financial performance. Its operating revenue increased from GH¢15.8 billion in 2024 to GH¢48.6 billion in 2025. Its net profit margin also improved from a negative 35.1% in 2024 to 10.4% in 2025.

ANAS/MA

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