Ghana struggles to raise local funds for delayed cocoa season as investors demand higher returns

Ghana is grappling with raising funds domestically to cover the delayed 2026/27 cocoa season, according to industry insiders. Licensed buyers warn that GH¢4 billion in unpaid debts could impede their ability to purchase beans from farmers. The 2026/27 cocoa season commenced in early August, but it has yet to kick off, more than two weeks after Ivory Coast, the world's largest producer, launched its main crop.

Local institutional investors are now demanding higher risk premiums and coupon rates before committing funds, citing increased interest costs as a factor. Ghana's regulator, COCOBOD, has traditionally financed its crop purchases via syndicated loans from international banks, but these have become scarce since Ghana's 2022 economic crisis.

The regulator resorted to direct financing from international traders for the 2024/25 season, but this model may face the same high interest rates. Rollover contracts have further complicated matters, with COCOBOD estimating a loss of $941.58 million in foregone revenue due to these contracts. The Finance Minister, Dr. Cassiel Ato Forson, announced that Ghana would now issue cocoa bonds domestically to raise a revolving fund for bean purchases during each crop year, with export proceeds used to retire the bonds.

The new cocoa bonds are expected to be issued within COCOBOD's balance sheet, with export revenues used to repay the bonds in the same season. The Producer Price Review Committee has cut the farmgate price to GH¢41,392 per tonne from GH¢58,000, citing buyers' unwillingness to purchase Ghana's uncompetitive and expensive cocoa.