Ghana Cocoa Board has announced that it is putting the final touches on a new financing structure for the cocoa industry, which is expected to take effect in the 2026/2027 crop season to support stable pricing and sustainable earnings for farmers.
The disclosure was made by Randy Abbey during a panel discussion on Pre-Export Liquidity and Long-Term Capital at the Africa Cocoa Finance & Investment Forum 2026 held at the London Stock Exchange.
Speaking at the event, Dr Abbey explained that Ghana’s cocoa industry had depended for over 30 years on syndicated loans secured with forward cocoa sales to finance annual purchases of cocoa beans.
He noted that while the financing arrangement had consistently provided funds for cocoa purchases, it also meant a large share of the country’s cocoa production had to be committed to offshore lenders.
“While effective in providing liquidity, it also required between 70 per cent and 92 per cent of the cocoa crop to be collateralised to offshore financiers, underscoring the urgent need for a paradigm shift in policy,” he said.
Dr Abbey indicated that the new arrangement would introduce an updated pricing system that allows producer prices to be reviewed periodically, likely every quarter, during the crop season.
“The new funding model will come with a new pricing mechanism which will involve periodic reviews, maybe quarterly, and will be used for the entire crop,” Dr Abbey stated.
He further explained that the framework would raise funding through instruments such as commercial paper and commercial notes, while also drawing on local liquidity and support from institutional investors.
According to him, the reforms would preserve the existing policy that allocates 70 per cent of the Free-On-Board (FOB) price to cocoa farmers, while enabling price revisions in response to changes in global cocoa prices and exchange rate movements.
Dr Abbey said the main goal was “to strike a careful balance between income stability for farmers and the financial sustainability of the cocoa sector.”
He added that the initiative would encourage wider participation in the cocoa sector, improve access to financing for local processors and Ghanaian-owned businesses, and help retain more value within the country.
The COCOBOD Chief Executive also expressed optimism about the ability of Ghana’s financial sector to support the transition, pointing to improving economic conditions and rising investor appetite for structured financial products.
He admitted there were concerns from some stakeholders, especially Licensed Buying Companies and investors, over the structure and size of the proposed financing system.
Dr Abbey disclosed that a detailed prospectus explaining participation opportunities was currently being prepared and would be presented before the commencement of the 2026/2027 crop season.
He stressed that the planned reforms were intended to shield cocoa farmers from fluctuations in global cocoa prices.
The forum was organised by Cocoa Trade and Invest Africa in collaboration with International Cocoa Organization and the UK office of Cocoa Marketing Company to advance reforms and attract investment into Africa’s cocoa industry.