Mr. Ato Boateng
The Ghana Cocoa Board (COCOBOD) has made significant progress towards implementing a new locally financed funding mechanism designed to raise working capital for cocoa purchases through the issuance of commercial paper, Deputy Chief Executive in charge of Finance and Administration, Ato Boateng, has disclosed.
Speaking in an interview on the sidelines of the Ghana–UK Investment Summit in London, Mr. Boateng said preparations for the programme were at an advanced stage, with plans to roll out the facility before the commencement of the 2026/2027 cocoa crop season.
He explained that pension funds, commercial banks, international cocoa buyers and other strategic players within the cocoa value chain had been identified as key sources of financing under the proposed arrangement.
“We have made significant progress and engaged all the necessary advisors to support the issuance process. The advisors are working diligently to finalise the financing structure, which is now at an advanced stage, while addressing all regulatory requirements and concerns raised by the relevant authorities,” he said.
The initiative forms part of the government’s broader efforts to transition away from the syndicated loan arrangement that has financed Ghana’s cocoa purchases for more than three decades.
He said the proposed commercial paper programme is expected to provide a more flexible and sustainable source of funding while deepening domestic participation in cocoa financing.
According to Mr. Boateng, pension funds have emerged as one of the most promising funding sources for the new model.
He indicated that COCOBOD was also exploring support from commercial banks and private placement arrangements involving international buyers and stakeholders across the cocoa value chain.
He described the initiative as an innovative financing solution that would enhance the resilience and long-term sustainability of Ghana’s cocoa industry.
“We need to be innovative in our approach because we also want commercial banks to play an active role. To achieve this, we are exploring opportunities to bring Development Finance Institutions on board to enhance the lending capacity of participating banks,” he stated.
Mr. Boateng noted that one of the key advantages of the proposed financing framework was its tranche-based structure, which would enable COCOBOD to draw down funds only when required for cocoa purchases.
“The objective is to structure the financing in tranches, enabling us to draw down only the funds required for cocoa purchases at any given time. Once those funds are no longer needed, we can repay investors promptly, ensuring prudent utilisation of resources and minimising financing costs,” he explained.