Story by Eugene Nyarko Jnr. | Accra | Thursday, February 12, 2026
The Chief Executive Officer of the Ghana Cocoa Board (Cocobod), Dr. Randy Abbey, has announced that the Board will introduce a new funding model for Ghana’s cocoa industry effective the 2026/2027 crop season, following Cabinet decisions aimed at far-reaching reforms in the sector.
Dr. Abbey made the disclosure when the leadership of the Ghana Journalists Association (GJA), led by its President, Albert Kwabena Dwumfuor, paid a courtesy call on him at Cocobod’s headquarters in Accra.
He described the visit as timely, noting that Cocobod, which will mark its 80th anniversary in 2027, was at a critical turning point in its history.
End of the Syndicated Loan Era
Tracing the evolution of cocoa financing in Ghana, Dr. Abbey explained that since 1992, Cocobod had relied on a syndicated loan facility — a consortium of foreign banks providing annual pre-export finance — to fund cocoa purchases.
Under the arrangement, Cocobod, through the Cocoa Marketing Company (CMC), would forecast production volumes and secure forward sales contracts with international buyers. These contracts, often covering between 70 and 80 per cent of projected output, were then used as collateral to secure loans from international banks.
The proceeds, paid in foreign exchange to the Bank of Ghana, were converted into cedis and used to provide “seed funds” to Licensed Buying Companies (LBCs) to purchase cocoa beans from farmers. Cocobod would later ship the beans to buyers, and export proceeds would go back to the central bank.
Dr. Abbey noted that the syndicated loan system had operated for 32 years until the 2023/2024 season, when significant disruptions emerged.
Financial Strain and Unprecedented Defaults
According to the CEO, the 2023/2024 crop season marked a turning point. Cocobod projected an output of 800,000 tonnes and signed contracts for 786,000 tonnes — more than 90 per cent of expected production.
However, for the first time in the history of the syndicated loan, the first tranche of funds did not hit Cocobod’s account until December 22, four months after the season had opened in September.
“That had never happened before. It was a clear indication that something was wrong,” Dr. Abbey stated.
By the end of the season, Cocobod was unable to supply 333,767 tonnes of cocoa under signed contracts — an unprecedented development. In addition, the then management sought a $70 million bridge financing facility from the Ministry of Finance in July 2024 to avoid defaulting on loan repayments.
Although the Ministry released the funds to enable Cocobod meet its obligations to lenders, the Board later defaulted on repayment to the Ministry of Finance. Dr. Abbey said the $70 million bridge financing formed part of the debt inherited by the current administration.
Rollover Contracts and Farmer Pricing Concerns
Dr. Abbey further revealed that the inability to supply the contracted volumes led to “rollover contracts” priced at as low as $2,600 per tonne, even as world market prices surged to between $9,000 and $12,000 per tonne due to global supply shortages.
He explained that the existence of these low-priced rollover contracts significantly affected the declared Free-On-Board (FOB) price for the 2023/2024 season.
Although global prices were high, Cocobod declared an FOB price of $4,800 per tonne and paid farmers $3,100 per tonne, representing 63.9 per cent of the FOB price. This sparked public criticism at the time.
“What many people did not know was that the 333,767 tonnes priced at $2,600 had to be factored into the weighted average. That brought down the declared FOB price,” Dr. Abbey clarified.
He added that in the subsequent 2024/2025 season, Cocobod shifted — by necessity — from the syndicated loan model to a buyer-financed model, where international buyers provided up to 60 per cent of funds upfront for purchases.
However, this arrangement meant that high-priced cocoa purchased from farmers was used to service low-priced rollover contracts, resulting in revenue losses and additional financial strain.
New Funding Model from 2026/2027
Dr. Abbey said the current management quickly realised that the buyer-funded model was unsustainable in the long term, especially as global production improves and price differentials narrow.
He indicated that Cocobod, in collaboration with the Ministry of Finance, has begun working on a new funding model to take effect from the 2026/2027 crop season.
“We made it clear from day one that we did not see this buyer-funded model going beyond 2025/2026. Effective 2026/2027, we will need a new funding model,” he stressed.
Dr. Abbey expressed optimism that the reforms approved by Cabinet would restore stability to the cocoa sector, protect farmer incomes and strengthen Ghana’s foreign exchange position.
He assured the GJA of Cocobod’s commitment to transparency and pledged continued engagement with the media as the Board implements the new reforms.
