US$1billion cocoa financing plan to deepen domestic bond market - BoG

Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana (BoG), says cocoa purchases for the 2026/2027 crop season will be financed with $1 billion raised from the local bond market. He said the model was part of efforts to strengthen the country's cocoa financing system.

The proposed funding model is expected to reduce dependence on foreign borrowing and external lenders, while boosting domestic financing capacity. The initiative is also expected to deepen the local capital market, attract greater participation from institutional investors and strengthen confidence, following the successful resumption of domestic treasury bond issuance earlier this year. The new financing arrangement would mobilise capital through instruments such as commercial paper and commercial notes, while tapping into domestic liquidity sources. Opening the 130th meeting of the Monetary Policy Committee (MPC) of BoG at the central bank's head office, Bank Square, in Accra, Dr. Asiama stated that the new model would mark a major shift in Ghana's cocoa financing strategy by promoting price stability, sustainable farmer incomes and longer-term government debt management. He observed, "This is a significant shift to reduce reliance on dollar funding and foreign lenders."

The 130th MPC meeting, which began yesterday, is expected to conclude on May 20, 2026. A press conference will be held to announce the committee's decision on the policy rate. The policy rate currently stands at 14 per cent.