Ghana is preparing to raise $1 billion by issuing domestic bonds to finance cocoa purchases from farmers ahead of the 2026/2027 crop season. This initiative is part of a broader strategy to overhaul how the country finances and delivers cocoa to global buyers.

The plan, revealed by anonymous sources familiar with the discussions, comes as Ghana, the world's second-largest cocoa producer, grapples with significant market volatility and funding pressures. These challenges stem from a sharp decline in cocoa prices following a historic rally in 2024, prompting the government to re-evaluate its financing arrangements for farmers and cocoa procurement.

Randy Abbey, head of the Ghana Cocoa Board, stated that the bond is expected before the new cocoa season begins around August. Crucially, the bond will be denominated in the Ghanaian cedi. This is a deliberate move to lessen the nation's reliance on dollar funding and foreign lenders.

Abbey expressed confidence in Ghana's ability to access the domestic debt market, citing favourable current borrowing conditions, including easing inflation and declining interest rates. He remarked, “We are looking at funding the entire crop. We believe that the interest rates in Ghana now are at the right place for us to go into the market.”

The initiative also aims to establish a more stable funding framework for Ghana's vital cocoa industry. Historically, the sector has faced repayment difficulties linked to trader-backed loans used for farmer purchases.

Ghana's cocoa financing struggles have also highlighted deeper liquidity issues within the country's state-controlled cocoa purchasing system.