LONDON, May 8 – Ghana is preparing to raise about $1 billion through domestic bonds to finance cocoa purchases ahead of the 2026/2027 crop season, as authorities seek to reduce reliance on foreign borrowing and stabilize the country’s cocoa sector.
The planned fundraising, expected before the next cocoa season begins around August, would be denominated in Ghanaian cedis, according to comments by Chief Executive Officer of Ghana Cocoa Board Randy Abbey at the Africa Cocoa Investment Forum in London.
The move comes as Ghana, the world’s second-largest cocoa producer, grapples with funding pressures and market volatility following the sharp decline in cocoa prices after the commodity’s record rally in 2024.
Abbey said the government believes easing inflation and lower borrowing costs have created favourable conditions for the country to tap the domestic debt market.
“We are looking at funding the entire crop,” he said, adding that authorities see current interest-rate conditions as supportive for local market financing.
The proposed bond sale is also aimed at restructuring the financing model for Ghana’s cocoa industry, which has long depended on trader-backed foreign loans to purchase cocoa from farmers.
The financing strain has exposed broader liquidity challenges within the country’s state-controlled cocoa purchasing system.
Producer Buying Company, which is legally required to purchase cocoa from farmers as a buyer of last resort, has struggled with mounting debt and liquidity shortages.
According to earlier reports, the company accumulated about 673 million cedis in debt, equivalent to roughly $60 million, raising concerns over possible asset seizures and delayed payments to cocoa farmers.
The company also reportedly owed farmers around 24 million cedis for more than 9,000 bags of cocoa already delivered, while lacking enough liquidity to continue large-scale purchases.
The cocoa financing challenges come as Ghana’s inflation rate showed signs of renewed pressure, rising to 3.4% year-on-year in April from 3.2% in March, marking the first increase since December 2024.
Meanwhile, Bank of Ghana has continued easing monetary policy after inflation slowed sharply over the past year. The central bank reduced its benchmark interest rate to 14% after a series of consecutive rate cuts beginning in 2025.
