Some international buyers of Ghana’s cocoa have begun advancing part of a $4 billion-plus facility to COCOBOD for the purchase of beans for the 2025/2026 crop season.
JoyBusiness sources indicate that the full amount will be disbursed in phases, though a substantial tranche is expected before the year ends. The advances are aimed at securing firm commitments from COCOBOD for cocoa supply.
New Funding Model
In 2023, COCOBOD rolled out a new financing arrangement that obliges global traders to deposit at least 60% of the value of their forward contracts upfront. This replaced the long-standing pre-export syndicated loan system that had been in place for over three decades.
Under the new structure, traders provide funds to licensed buying companies (LBCs) to purchase cocoa, with COCOBOD serving as the intermediary. Part of these deposits are then used to pay farmers directly.
Boost for the Cedi
Analysts note that beyond supporting cocoa farmers, the inflows will provide a major cushion for the cedi by shoring up the Bank of Ghana’s foreign reserves.
As of July, Ghana’s reserves stood at $11.1 billion. Bank of Ghana Governor, Dr. Johnson Asiama, told JoyBusiness that the inflows reaffirm the central bank’s capacity to meet market demands.
“These advances show that the Bank is well-positioned to intervene when necessary,” Dr. Asiama said, stressing that Ghana’s macroeconomic fundamentals remain strong.
He added that additional inflows from development partners are also expected later in the year, a development likely to further stabilise the cedi and boost market liquidity.
