Ghana's cocoa regulator will this month issue cedi-denominated commercial paper and other domestic debt instruments to finance its operations, marking a sharp break from the syndicated-loan model it relied on for more than three decades, Citi News reported.

Randy Abbey, CEO of the Ghana Cocoa Board (COCOBOD), said the state agency planned to issue 270-day commercial paper under a funding programme expected to operate over the next five years, speaking at a media briefing on the new Ghana COCOBOD Bill, 2026.

Part of the proceeds would be used to service outstanding debts requiring COCOBOD to make substantial annual payments over the next three years, he said.

"We need to raise the money this month. We are hopeful that we will be able to raise the money and have an enduring funding policy for cocoa," Abbey said.

The domestic market has considerable liquidity, with Ghanaian pension funds managing more than GHS100bn ($8.5bn). COCOBOD has already engaged fund managers and advisers to structure the new financing model.

Abbey said the government believed the domestic market had sufficient liquidity for COCOBOD to raise about GHS16bn annually, allowing it to borrow roughly half of its funding requirement at any one time and roll over the short-term notes.

COCOBOD historically financed its operations, principally cocoa purchases from farmers, through annual syndicated loans from international banks. The model came under severe strain during Ghana's debt crisis, with the 2023 facility delayed before syndicated financing ultimately failed for the 2024/25 crop season after 32 years.

The regulator has since moved towards domestic and alternative financing as part of broader reforms intended to improve its financial sustainability.

COCOBOD also restructured about GHS7.93bn of short-term Cocoa Bills in 2023 into longer-dated bonds maturing between 2024 and 2028 as part of Ghana's domestic debt restructuring.

The resulting obligations leave COCOBOD facing debt-service payments of about GHS2.6bn annually, including payments falling due in 2026, 2027 and 2028, adding to pressure on its finances.

Ghana is the world's second-largest cocoa producer after Côte d'Ivoire, with the two countries accounting for about 60% of global production. Cocoa accounted for about 1.9% of Ghana's GDP in the first quarter of 2026, while COCOBOD estimates that the crop supports around 850,000 farming families and generates about $2bn in foreign exchange annually.

Major cocoa processors operating in Ghana include Cargill, Barry Callebaut (SIX:BARN) and ofi, owned by Olam Group (SGX:VC2), alongside the locally listed Cocoa Processing Company (GSE:CPC). The government is seeking to deepen domestic value addition, with a target for at least 50% of Ghana's cocoa beans to be processed locally from the 2026/27 crop season.