The Mahama-led government has announced it will maintain the use of syndicated loans to finance cocoa purchases for the 2025/2026 season, while working with the Ghana Cocoa Board (COCOBOD) to explore more sustainable long-term financing options for the sector.
For decades, Ghana has relied on syndicated loans from international banks to pre-finance cocoa purchases at the start of each season, a model that has supported production and sustained the livelihoods of cocoa farmers nationwide.
Speaking at a press briefing after announcing the new producer price for cocoa on 4 August, Finance Minister Dr Cassiel Ato Forson acknowledged concerns over the long-term viability of this financing approach. However, he confirmed that the arrangement used in 2024 will remain unchanged for the upcoming crop season.
“Nothing has changed; we will continue financing cocoa in the same way as it was financed in the last crop season [2024]. We’ll finance it as we financed the immediate past crop season,” he stated.
On the same day, the government announced a substantial increase in the producer price of cocoa for the 2025/2026 season, from US$3,100 to US$5,040 per tonne, representing a 62.58% rise in dollar terms.
Dr Forson explained that the new price represents a 62.58 per cent increase in US dollar terms and aligns with President Mahama’s pledge to ensure cocoa farmers receive 70 per cent of the Free-On-Board (FOB) value.
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