Ghana, the world’s second-largest cocoa producer, plans to begin raising $1 billion through local bonds in July to fund cocoa bean purchases for the 2026-27 harvest season. A

ccording to sources familiar with the matter, the issuance will be divided into three tranches of approximately $330 million each, scheduled for July 2026, December 2026, and March 2027.

Cocobod intends to fully repay each tranche before issuing the next.

This strategy aims to transition cocoa financing from international loans to domestic capital markets, reducing foreign exchange risk and allowing Cocobod more autonomy over farmer payments.

The government’s goal is to create a self-sustaining system where borrowing is repaid directly from crop sales proceeds within the same year.

The plan serves as a significant test of investor confidence following Ghana’s recent debt restructuring and financial sector volatility.

While the shift could establish a new financing model for African cocoa, risks remain regarding the appetite of local banks and the necessity of offering competitive returns without overburdening the cocoa sector’s costs.

Successful implementation is critical for ensuring timely payments to farmers and maintaining a stable global supply.