The Ghana Cocoa Board (COCOBOD) has vehemently dismissed allegations that its officials are participating in private cocoa purchasing activities.

The industry regulator insisted that all cocoa buying operations across the country are tightly managed and executed solely through authorised Licensed Buying Companies (LBCs).

The denial comes on the heels of concerns raised by the Ghana National Cocoa Farmers Association (GNACOFA). The association cautioned that reported under-the-table buying by public officials was eroding market confidence, distorting fair competition, and worsening financial strains within the sector.

Speaking to journalists in Accra, the Chief Executive Officer of COCOBOD, Dr Ransford Abbey, characterised the allegations as entirely unfounded and born out of a misunderstanding of how the trade functions.

"Those who buy cocoa are the agents of the licensed buying companies," Dr Abbey stated. "Officials of Cocoa Board do not buy cocoa. The Cocoa Board licenses buying companies which have agents in the districts purchasing cocoa on their behalf. These companies are buying the cocoa on behalf of Cocoa Board, so how can anybody say that an official of Cocoa Board is out there buying cocoa? It is born out of ignorance."

The regulatory body reassured the public that its mandate remains strictly supervisory and geared towards maintaining the integrity of the Ghanaian cocoa value chain, which is currently grappling with persistent issues such as cross-border smuggling and falling global prices.

A Radical Shift: The New Cocoa Financing Model

The controversy unfolds at a defining moment for COCOBOD, which is aggressively structuring a major policy shift ahead of the 2026/2027 crop season. For over three decades, Ghana relied heavily on offshore syndicated loans backed by forward cocoa sales to fund its annual crop purchases. However, that traditional model has increasingly strained the regulator's balance sheet, collateralising between 70% and 92% of the country's cocoa to foreign financiers.

To break this reliance, the government and COCOBOD have unveiled a new financing framework designed to tap directly into domestic liquidity. The pillar of this overhaul is a planned US$1 billion cedi-denominated domestic cocoa bond programme designed to operate as a self-sustaining revolving fund.

Addressing international investors recently at the Africa Cocoa Finance & Investment Forum (ACFIF) at the London Stock Exchange, Dr Abbey explained the structural advantages of the impending paradigm shift.

"The new funding model will come with a new pricing mechanism which will involve periodic reviews, maybe quarterly... and will be used for the entire crop," Dr Abbey disclosed. "The new financing model will utilise domestic cocoa bonds to purchase cocoa and repay with cocoa proceeds within each crop year. The bonds will be used to raise a revolving fund for COCOBOD to turn around at least once during the season."

Reviving Indigenous Buyers and Local Processing

A major casualty of previous stop-gap financing measures, which heavily favoured foreign buyers willing to pre-finance purchases, was the local buying industry. COCOBOD notes that the domestic bond model will deliberately create a fairer playing field to revive indigenous LBCs, including the state-owned Produce Buying Company (PBC), which have struggled to survive.

Furthermore, because raw beans will no longer be entirely locked up as collateral for offshore loans, Ghana will finally have the freedom to supply local factories. Cabinet has already directed that a minimum of 50% of all cocoa beans must be processed locally starting in the 2026/2027 season to spur job creation and value retention.

Pushing for Farmer Sustainability

The push for local financial independence aligns closely with broader state goals to insulate farmers from international market shocks. Global cocoa prices have seen intense volatility, dropping sharply from historic highs in 2024 to around US$3,791 per tonne by mid-2026.

Commenting on the sector's outlook, Deputy Finance Minister Thomas Ampem Nyarko noted that structural overhauls and global dialogue are both necessary to secure the future of the industry.

"Cocoa directly affects millions of farmers," Ampem Nyarko said. "Yet despite sustaining the global chocolate industry worth well over US$100 billion annually, many cocoa farmers continue to live below income levels and that situation must concern all of us. The future of chocolate cannot be secured if the future of cocoa farmers remains uncertain."

While financial analysts warn that rebuilding local investor appetite for large-scale cocoa debt will be a critical test following recent macroeconomic restructurings, COCOBOD remains optimistic. The board plans to publish a detailed prospectus outlining participation frameworks for institutional investors well ahead of the 2026/2027 opening cycle.