Chief Govt of the Ghana Cocoa Board (COCOBOD), Dr Lunsford Abbey, has revealed {that a} new financing mannequin methodology for Ghana’s cocoa sector is nearing completion forward of the implementation of the 2026/2027 planting season.
He mentioned the brand new mannequin marks a significant shift in Ghana’s cocoa financing technique and goals to make sure worth stability and sustainable farmer incomes.
Dr Abiy made this recognized throughout a high-level panel dialogue on pre-export liquidity and long-term capital on the African Cocoa Finance and Funding Discussion board (ACFIF 2026) held on the London Inventory Change.
Dr. Abiy defined that for over 30 years, Ghana’s cocoa sector has relied on syndicated loans backed by ahead gross sales of cocoa to fund annual crop purchases. He mentioned the mannequin ensured entry to liquidity, but in addition required 70% to 92% of the cocoa crop to be collateralized by offshore financiers, underscoring the pressing want for a paradigm shift in coverage.
“The brand new funding mannequin comes with a brand new pricing mechanism with common, maybe quarterly critiques, and might be used throughout crops,” he mentioned.
The mannequin focuses on mobilizing capital via devices akin to industrial paper and notes, whereas leveraging home liquidity, together with from institutional buyers, the CEO mentioned.
He additional defined that the reform plan maintains the coverage of paying farmers 70% of the free on board (FOB) worth, whereas introducing periodic worth critiques to answer fluctuations in world cocoa costs and alternate charges. The intention, he mentioned, was to strike a cautious steadiness between farmers’ earnings stability and the cocoa trade’s monetary sustainability.
The mannequin can also be anticipated to increase entry to finance for native processors and indigenous Ghanaian companies, rising their participation within the cocoa financial system by strengthening home worth retention.
COCOBOD CE expressed confidence within the energy of Ghana’s monetary ecosystem in supporting this transition, citing improved macroeconomic situations and elevated investor curiosity in structured monetary merchandise.
Dr. Abbey additional acknowledged that the construction and scale of economic assist underneath the brand new mannequin wants readability amongst stakeholders, notably licensed corporations (LBCs) and the investor group.
He indicated {that a} detailed prospectus outlining alternatives for participation by monetary establishments and buyers is being developed, including that its contents might be absolutely defined to key stakeholders forward of the opening of the 2026/2027 planting season.
He expressed optimism that Ghana’s cocoa farmers’ incomes can be higher protected against world cocoa worth fluctuations within the coming years.
In the meantime, the 2026 Africa Cocoa Finance and Funding Discussion board (ACFIF), organized by Cocoa Commerce and Funding Africa in collaboration with the Worldwide Cocoa Group (ICCO) and the Cocoa Advertising and marketing Firm UK Workplace (CMC UK), introduced collectively coverage makers, buyers and trade stakeholders to drive reform and open up funding throughout Africa’s cocoa sector.
