Ghana Cocoa Board (COCOBOD) is finalising a new funding model for the cocoa sector ahead of its implementation in the 2026/2027 crop season.
The model aims to ensure price stability and sustainable income for cocoa farmers while broadening access to domestic financing and retaining value within the country.
Dr. Ransford Abbey, Chief Executive of COCOBOD, disclosed this during a high-level panel discussion on Pre-Export Liquidity and Long-Term Capital at the Africa Cocoa Finance & Investment Forum (ACFIF 2026), held at the London Stock Exchange.
He explained that Ghana’s cocoa sector has, for over three decades, relied on syndicated loans backed by forward cocoa sales to finance annual crop purchases.
Dr. Abbey noted that, while effective in providing liquidity, “it also required between 70 per cent and 92 per cent of the cocoa crop to be collateralised to offshore financiers, underscoring the urgent need for a paradigm shift in policy.”
“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.”
Dr. Abbey said that the model would mobilise capital through instruments such as commercial paper and commercial notes while tapping into domestic liquidity, including institutional investors.
The proposed reform will maintain the policy of paying farmers 70 per cent of the Free-On-Board (FOB) price, introducing periodic price reviews to reflect movements in global cocoa prices and exchange rates.
Dr. Abbey said the aim was “to strike a careful balance between income stability for farmers and the financial sustainability of the cocoa sector.”
He said that the model would broaden participation in the cocoa economy, create greater financing access for local processors and indigenous Ghanaian companies, and strengthen value retention within the country.
Dr. Abbey expressed confidence in Ghana’s financial ecosystem to support the transition, citing improving macroeconomic conditions and growing investor interest in structured financial instruments. He acknowledged the need for clarity among stakeholders, particularly Licensed Buying Companies and investors, regarding the structure and scale of funding support.
Dr. Abbey said a detailed prospectus outlining participation opportunities is being finalised and would be fully explained ahead of the opening of the 2026/2027 crop season, adding that the model would better protect farmers’ incomes from global cocoa price volatility.
ACFIF 2026, convened by Cocoa Trade and Invest Africa in partnership with the International Cocoa Organization (ICCO) and the United Kingdom office of the Cocoa Marketing Company (CMC UK), brought together policymakers, investors and industry stakeholders to advance reforms and unlock investment across Africa’s cocoa sector.
