Ghana, the world’s second-largest cocoa producer, will from July start raising $1 billion of bonds for cocoa bean purchases in the 2026-27 harvest season, according to people familiar with the matter.

The local bonds will be in three tranches of about $330 million each, with the first slated for the middle of July, the second in December and the third by March of 2027, the people said, asking not to be identified as discussing confidential information. Cocobod would fully pay off each tranche before the next issuance.

The bond plan comes as Ghana tries to rebuild the sector after cutting its farmgate cocoa price earlier in 2026. The government wants a system where cocoa purchases are funded within the crop year and repayment is tied to sales proceeds. The test will be whether local investors have enough appetite for the bonds after Ghana’s debt restructuring and recent stress in its financial system.

Industry Concerns

Ghana’s planned $1 billion cocoa bond is more than a funding move. It is a test of whether the country can shift cocoa finance from foreign loans to local capital markets. That would reduce dollar risk and give Cocobod more control over how it funds farmer purchases. It could also help restore confidence in a sector hit by debt, payment delays and price swings.

But the plan carries risk. Ghana’s domestic investors are still recovering from the country’s debt restructuring, and banks already have exposure to cocoa buyers. A cedi bond also means the government must offer a return that attracts investors without making the cocoa system too costly.

The timing matters because Ghana needs to pay farmers on time, protect supplies, and keep global buyers confident. If the bond works, it could create a new model for financing cocoa in Africa. If demand is weak, Ghana may still need foreign lenders or emergency support to keep the crop moving.