Finance Minister Dr. Cassiel Ato Forson has announced that the Ghana Cocoa Board (COCOBOD) will soon issue commercial papers to raise about US$1 billion to finance cocoa bean purchases for the 2026/2027 crop season.

Speaking at the Ghana-UK Investment Summit 2026 in London, Dr. Forson said the move forms part of a new financing strategy aimed at reducing COCOBOD's dependence on traditional offshore syndicated loans, which have become increasingly difficult to secure.

According to the Finance Minister, the transaction advisor for the deal has completed its work and submitted its report, paving the way for the issuance of the commercial papers in the coming weeks.

"The transaction advisor just submitted the report and we will issue very soon. We are not solely relying on Ghanaian banks but pension funds and non-resident investors. We will issue it in three tranches," Dr. Forson disclosed.

He explained that the transaction remains subject to the passage of the new Cocoa Bill by Parliament and subsequent presidential assent. Once those approvals are secured, government will provide further details on the structure and implementation of the fundraising programme.

The planned issuance is expected to raise approximately US$1 billion to support the purchase of cocoa beans during the next crop season, ensuring that COCOBOD has adequate liquidity to pay farmers and maintain operations across the cocoa value chain.

The announcement marks a significant shift in the financing model for Ghana's cocoa sector. Historically, COCOBOD relied on annual syndicated loans from international banks to fund cocoa purchases. However, the rising debt levels, market volatility and tightening global financing conditions have made that approach increasingly challenging.

Under the new arrangement, COCOBOD intends to issue domestic cocoa-linked debt instruments to create a revolving fund that can be used to purchase cocoa and subsequently be repaid from cocoa sales proceeds within the same crop year.

Industry observers say the strategy could help deepen Ghana's domestic capital market by attracting investments from pension funds, local institutional investors and foreign investors seeking exposure to Ghana's cocoa sector.

The new financing framework is also expected to provide a lifeline for indigenous Licensed Buying Companies, many of which have struggled under the existing financing structure. It could further enable COCOBOD to sell greater volumes of cocoa beans to local processing companies, supporting value addition, industrialisation and job creation.

COCOBOD's financing challenges have come under increasing scrutiny in recent years amid concerns over its debt burden, which stood at approximately GH¢32 billion earlier this year. Analysts believe a successful commercial paper programme could help diversify funding sources and improve the sustainability of cocoa sector financing.

The cocoa sector remains a critical pillar of Ghana's economy, contributing significantly to export earnings, rural livelihoods and foreign exchange inflows. The government hopes the new financing model will strengthen the sector's resilience while ensuring uninterrupted support for cocoa farmers across the country.