Finance Minister Dr. Cassiel Ato Forson has declared the government’s intention to launch a new commercial paper program for the Ghana Cocoa Board (COCOBOD), signifying a departure from the traditional syndicated loan system that has been utilized for financing cocoa acquisitions.
During his address at the Ghana-UK Investment Summit 2026, Dr. Forson indicated that the transaction advisers tasked with developing the new financing framework have finalized their work and submitted their findings, thus paving the way for the commercial paper issuance.
He stated that this new model will expand investor involvement beyond just local banks to encompass pension funds and non-resident investors. He elaborated that this initiative aims to diversify COCOBOD’s funding sources while decreasing dependence on the annual syndicated loan facility.
To guarantee consistent financing throughout the cocoa season, the commercial paper will be issued in three phases. The initial phase will cover up to two months of cocoa purchases, the second will finance an additional three months, and the final phase will support the remainder of the season.
Additionally, he pointed out that the program is designed around an escrow arrangement, wherein the proceeds from cocoa sales will be deposited into a dedicated account and utilized to repay investors directly. This facility will operate for eight months and will be retired at the conclusion of each season before being reissued for the subsequent cocoa cycle.
Dr. Forson remarked that this initiative signifies a distinct shift from COCOBOD’s conventional syndicated loan system, which has historically provided liquidity for cocoa purchases but has not adequately facilitated value addition within the sector.
He further noted that the new financing strategy is anticipated to bolster local processing and industrialization within the cocoa value chain.
“As we acquire cocoa using our own resources and domestic bonds, in conjunction with the close cooperation between the Government of Ghana and COCOBOD, we will ensure that at least 50% of the cocoa sourced locally is processed. All preparations are complete, and we are poised to initiate the launch,” he remarked.
