Dr. Ransford Abbey
Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Dr. Ransford Abbey, has disclosed that modalities for a new funding model for the cocoa sector are nearing completion ahead of its implementation in the 2026/2027 crop season.
COCOBOD, in a statement, said the new model marks a major shift in the country’s cocoa financing strategy and seeks to ensure price stability and sustainable farmer incomes.
Dr. Abbey made this known during a high-level panel discussion on Pre-Export Liquidity & Long-Term Capital at the Africa Cocoa Finance and Investment Forum, held at the London Stock Exchange.
Dr. Abbey explained that Ghana’s cocoa sector has, for more than three decades, relied on syndicated loans backed by forward cocoa sales to finance annual crop purchases.
According to him, although the model ensured access to liquidity, it also required between 70 percent and 92 percent of the cocoa crop to be collateralised to offshore financiers, which points to 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, possibly quarterly, and will be used for the entire crop,” he said.
According to the Chief Executive, the model focuses on mobilising capital through instruments such as commercial paper and commercial notes, while tapping into domestic liquidity, including institutional investors.
He further explained that the proposed reform would maintain the policy of paying farmers 70 percent of the Free-On-Board (FOB) price, while introducing periodic price reviews to respond to movements in global cocoa prices and exchange rates.
The objective, he said, is to strike a careful balance between income stability for farmers and the financial sustainability of the cocoa sector.
The model is also expected to broaden participation in the cocoa economy by creating greater financing access for local processors and indigenous Ghanaian companies, thereby strengthening value retention within the country.
Dr. Abbey also expressed confidence in the strength of Ghana’s financial ecosystem to support the transition, citing improving macroeconomic conditions and growing investor interest in structured financial instruments.
He further acknowledged the need for clarity among stakeholders, particularly Licensed Buying Companies (LBCs) and the investor community, regarding the structure and scale of funding support under the new model.
Dr. Abbey indicated that a detailed prospectus outlining participation opportunities for financial institutions and investors is being finalised, adding that its contents will be fully explained to key stakeholders ahead of the opening of the 2026/2027 crop season.
He also expressed optimism that the incomes of Ghanaian cocoa farmers would be better protected from global cocoa price volatility in the years ahead.
Meanwhile, the Africa Cocoa Finance and Investment Forum was convened by Cocoa Trade and Invest Africa in partnership with the International Cocoa Organization and the United Kingdom office of the Cocoa Marketing Company.
The forum brought together policymakers, investors, and industry stakeholders to advance reforms and unlock investment opportunities across Africa’s cocoa sector.
By Ebenezer K. Amponsah