Ghana Cocoa Board (COCOBOD) Chief Executive Dr. Ransford Abbey has disclosed that a new cocoa sector funding model is nearing completion and will be introduced for the 2026/2027 crop season, marking a significant departure from a financing structure that has dominated the sector for over three decades.
Dr. Abbey made the disclosure during a high-level panel discussion on pre-export liquidity and long-term capital at the Africa Cocoa Finance and Investment Forum (ACFIF 2026), held at the London Stock Exchange.
He explained that Ghana’s cocoa sector has long relied on syndicated loans backed by forward cocoa sales to finance annual crop purchases. While the model secured reliable liquidity, it required between 70% and 92% of the cocoa crop to be collateralised to offshore financiers each season, a dependency Dr. Abbey said now demands urgent policy reform.
“The new funding model will come with a new pricing mechanism,” he said, adding that it would introduce periodic reviews, possibly quarterly, applicable to the entire crop.
The new framework will mobilise capital through instruments such as commercial paper and commercial notes while drawing on domestic liquidity sources, including institutional investors, to reduce the sector’s dependence on external financing. The model will retain the existing policy of paying farmers 70% of the Free-On-Board (FOB) price but will incorporate periodic pricing adjustments that respond to movements in global cocoa prices and exchange rates. Dr. Abbey said the intent is to balance income stability for farmers with the long-term financial sustainability of the sector.
The reform also aims to broaden economic participation by improving financing access for local processors and indigenous Ghanaian companies, strengthening value retention within the country rather than concentrating gains offshore.
Dr. Abbey acknowledged that Licenced Buying Companies (LBCs) and the investor community will require detailed clarity on the structure and scale of funding support under the new arrangement. He confirmed that a prospectus outlining participation opportunities for financial institutions and investors is being finalised and will be communicated to key stakeholders ahead of the new crop season.
ACFIF 2026 was convened by Cocoa Trade and Invest Africa in partnership with the International Cocoa Organization (ICCO) and the United Kingdom office of the Cocoa Marketing Company (CMC UK), bringing together policymakers, investors and industry stakeholders to advance financing reform and unlock investment across Africa’s cocoa sector.
