Finance Minister Dr Cassiel Ato Forson has revealed plans to introduce a commercial paper programme for the Ghana Cocoa Board (COCOBOD), signalling a move away from the syndicated loan facility that has traditionally financed cocoa purchases.

Addressing participants at the Ghana-UK Investment Summit 2026, Dr Forson said the groundwork for the new financing mechanism had been completed, with transaction advisers having finalised and submitted their recommendations to the government.

He explained that the proposed commercial paper programme is intended to broaden COCOBOD’s investor base by attracting participation from pension funds, institutional investors and foreign investors, in addition to domestic banks. The objective, he said, is to diversify funding sources and reduce dependence on the annual syndicated borrowing arrangement.

Under the proposed structure, the commercial paper will be issued in three phases throughout the cocoa season. The first issuance will provide financing for approximately two months of cocoa purchases, followed by a second tranche covering a further three months, while the final tranche will fund procurement activities for the remainder of the season.

Dr Forson noted that the programme will operate through an escrow mechanism under which revenue from cocoa sales will be deposited into a dedicated account and used directly to meet obligations to investors. The facility is expected to run for eight months before being settled and subsequently reissued for the following cocoa season.

He described the initiative as a significant shift from COCOBOD’s long-established syndicated loan model, arguing that the existing arrangement has largely focused on providing liquidity for cocoa purchases without adequately supporting value addition within the industry.

According to the Finance Minister, the new financing framework will help strengthen domestic cocoa processing and promote greater industrial activity along the cocoa value chain.

“As the cocoa is being purchased through our own resources and domestic bonds, and with close collaboration between the Government of Ghana and COCOBOD, we will be able to process a minimum of 50 per cent of the cocoa purchased locally. Everything is in place and we are ready to launch,” he said.