COCOBOD Dismisses International Market Exclusion Claims, Defends $1.4bn Domestic Financing Shift

The Ghana Cocoa Board (COCOBOD) has dismissed claims that its decision to raise $1.4 billion from domestic investors to finance cocoa purchases for the 2026/2027 season is a result of being shut out of the international financial market.

The proposed financing, equivalent to approximately GH¢16.3 billion, represents a significant shift from COCOBOD’s traditional reliance on international borrowing to pre-finance cocoa purchases.

Speaking on Channel One TV’s The Point of View on Monday, September 28, 2026, COCOBOD Deputy Chief Executive Officer in charge of Finance and Administration, Ato Boateng, said the move was a deliberate strategic decision informed by lessons from previous financing arrangements.

According to him, several international banks have approached COCOBOD about returning to the international market since he assumed office more than 18 months ago.

“Since I took this position over 18 months ago, I’ve had a lot of international banks coming to Cocoa Board to talk about Cocoa Board re-entering the market at the international level… It is not that we are forced out of the market. Yes, we had a crisis that pushed us out of the market. But beyond the crisis, they came back. And then, given what we also saw, we changed strategy,” he told host Bernard Avle.

Mr Boateng said he had resisted calls to return to international borrowing because of concerns about the conduct of some international financiers during COCOBOD’s financial difficulties.

“I don’t like fair-weather friends. You don’t run away from Cocoa Board when we have difficulties, and then when we have weathered those difficulties, then you show up,” he said.

He also pointed to COCOBOD’s previous reliance on international cocoa buyers to finance cocoa purchases through the buyer-financed model.

Under that arrangement, international buyers provided funding through COCOBOD to Licensed Buying Companies (LBCs) to purchase cocoa beans from farmers.

However, Mr Boateng said the model left Ghana’s cocoa purchasing system vulnerable to developments in international markets.

“When the prices dropped, these international guys moved away from Ghana. They stopped funding the beans. And then they created the problem that we saw,” he said.

He explained that COCOBOD subsequently decided to reduce its dependence on international financing and explore domestic sources of funding for cocoa purchases.

“Why would I place my financial strategy on boys and girls that I cannot really rely on?” he asked.

Mr Boateng said COCOBOD presented the proposed financing strategy to the Ministry of Finance, which subsequently took the proposal to Cabinet. Cabinet then approved the exploration of domestic sources of financing for the cocoa sector.

The new financing strategy follows the collapse of COCOBOD’s decade-old syndicated loan arrangement with international banks during the 2023/24 cocoa season, as well as the failure of a separate arrangement involving international trading houses to pre-finance cocoa purchases in the subsequent season.

COCOBOD’s operating revenue increased to GH¢48.6 billion in 2025 from GH¢15.8 billion in 2024, while its net profit margin improved to 10.4%, compared with a negative 35.1% recorded in 2024.

The proposed $1.4 billion domestic financing is expected to support cocoa purchases for the 2026/2027 season, settle outstanding obligations and provide greater stability in financing Ghana’s cocoa sector.