International buyers of Ghana’s cocoa have begun advancing part of the $4 billion-plus package earmarked for purchasing cocoa beans in the 2025/2026 crop season.
Although the full amount will not be disbursed at once, a significant portion is expected before the close of the year. The move reflects global traders’ determination to secure bean supplies by committing early to COCOBOD.
The new arrangement is part of COCOBOD’s restructured funding model, introduced in 2023, which requires international buyers to deposit at least 60% of the value of their forward contracts upfront.
This system replaced the decades-old pre-export syndicated loan facility sourced from international banks. Under the model, traders directly fund Licensed Cocoa Buying Companies (LBCs) to purchase beans from farmers, with COCOBOD serving as an intermediary to ensure supply commitments are met.
The approach is expected to reduce COCOBOD’s reliance on external bank loans while guaranteeing liquidity for local cocoa purchases.
Beyond benefits for cocoa farmers, analysts argue that the cedi will be one of the biggest winners from these inflows. The funds are expected to strengthen the Bank of Ghana’s international reserves, which stood at $11.1 billion in July, according to the Bank’s Economic and Financial Data.
Governor Dr. Johnson Asiama told JoyBusiness’s George Wiafe that the inflows should reassure the market of the central bank’s capacity to step in to meet the foreign exchange demands of commercial banks and businesses.
“This development shows a favourable outlook for the cedi despite recent pressures. As regulator, we have taken the needed actions to ensure that things do not get out of hand,” Dr. Asiama said.
He added that Ghana’s macroeconomic situation remains stable, giving confidence to businesses and investors about the cedi’s medium-term prospects. Additional inflows from development partners are also anticipated, which could provide further support to the reserves.
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