Ghana’s Cocoa Board (Cocobod) is set to introduce a new funding model that will require traders to pre-finance cocoa bean purchases. This move is aimed at addressing the country’s chronic funding challenges in the cocoa sector. Under the new model, traders will be expected to provide upfront funding for cocoa purchases, which will then be repaid with interest. This approach is intended to reduce the financial burden on Cocobod, which has historically struggled to secure funding for its operations.

The new model is expected to be implemented in the upcoming 2024/2025 cocoa season. It is part of a broader effort to revamp the cocoa sector and improve its financial sustainability. The move is also seen as a response to the recent decline in global cocoa prices, which has made it more challenging for Cocobod to secure funding from traditional sources.

The new funding model is expected to have significant implications for traders, who will need to adjust their financial strategies to accommodate the new requirements. The success of the model will depend on the willingness of traders to participate and the ability of Cocobod to manage the new financial arrangements effectively.

The Ghana Cocoa Board is a state-owned agency responsible for the purchase, processing, and export of cocoa beans. The new funding model is seen as a critical step in ensuring the long-term viability of the cocoa sector in Ghana.