COCOBOD says $1.4bn domestic funding is a strategic shift, not market exclusion
The Ghana Cocoa Board (COCOBOD) has rejected suggestions that its decision to raise $1.4 billion from domestic investors to finance cocoa purchases for the 2026/2027 season is the result of being shut out of international financial markets. The proposed financing, equivalent to about GH¢16.3 billion, represents a shift from COCOBOD’s traditional reliance on international borrowing […]
The Ghana Cocoa Board (COCOBOD) has decided to raise $1.4 billion from domestic investors to finance cocoa purchases for the 2026/2027 season, rejecting suggestions that this move is due to being excluded from international financial markets. Deputy Chief Executive Officer Ato Boateng explained that the shift represents a strategic change in approach, drawing on lessons from past financing arrangements.
Despite international banks approaching COCOBOD to return to the international market, the board opted for a different path, citing dissatisfaction with the conduct of some international financiers during past financial difficulties. The decision to reduce dependence on international financing stems from COCOBOD's previous reliance on overseas buyers through the buyer-financed model, which left Ghana's cocoa purchasing system vulnerable to market fluctuations.
COCOBOD's new financing strategy was approved by Cabinet after being presented to the Ministry of Finance. This move follows the collapse of a decade-old syndicated loan arrangement with international banks and a failed attempt by international trading houses to pre-finance cocoa purchases in the previous season.
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