The Ghana Cocoa Board (COCOBOD) has announced it will not seek syndicated loans to finance cocoa purchases for the 2025/2026 crop season.
The decision, driven by a global cocoa shortage and shifting market dynamics, marks a turning point in Ghana’s decades-old financing model.
Speaking to the media, Jerome Kwaku Sam, Head of Public Affairs at COCOBOD, confirmed the Board’s new direction.
“We’re not doing syndication. To be very honest, last year [2024], we didn’t do syndication, and this year [2025], we’re not doing syndication. What has necessitated us not to do syndication is that we’re experiencing a global shortage of the cocoa bean.”
For years, Ghana has relied on syndicated loans from international financial institutions to pre-finance cocoa purchases at the start of each season.
This model has ensured timely payments to farmers and supported production levels. But with global cocoa supplies tightening due to adverse weather, crop diseases, and declining yields, COCOBOD is rethinking its approach.
Jerome Sam emphasized that the decision is also a strategic cost-saving measure.
“We’re not doing syndication whereby we’re going to incur additional expenses and what have you. That is out of the system or table for now.”
The announcement comes just a day after Finance Minister Dr. Cassiel Ato Forson addressed concerns about the sustainability of Ghana’s syndicated loan model during a press briefing on August 4.
While acknowledging the challenges, Dr. Forson indicated that the government would maintain the current financing structure for now.
“We recognize the concerns, but for the time being, the financing model remains unchanged.”
The Minister also revealed a substantial increase in the producer price of cocoa, raising it from GH¢2,070 to GH¢3,370 per bag, a move aimed at boosting farmer incomes and fulfilling President Mahama’s commitment to ensure farmers receive at least 70% of the Free-On-Board (FOB) value.
