BoG ditches foreign loans for cocoa, $1bn domestic bond to fund 2026/2027 season as Ghana deepens local capital market.
The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has announced that cocoa purchases for the 2026/2027 crop season will be financed with $1 billion raised from the domestic bond market as part of a new strategy to strengthen cocoa financing, reduce reliance on foreign borrowing, and deepen the local capital market through instruments such as commercial paper and commercial notes. Speaking at the opening of the 130th Monetary Policy Committee (MPC) meeting in Accra, he said the approach would support price stability, sustainable farmer incomes, and improved debt management while boosting investor confidence in domestic financing. He noted that Ghana’s economic conditions have improved since the previous MPC meeting but warned that rising global energy prices, inflationary pressures, and geopolitical tensions—particularly in the Middle East and the Strait of Hormuz—pose risks to inflation control and macroeconomic stability. He added that the MPC would carefully balance these external shocks with domestic gains, while Ghana continues engagement with the IMF following the sixth and final review under the Extended Credit Facility and progresses toward a 36-month Policy Coordination Instrument aimed at strengthening reforms, improving policy credibility, and reducing dependence on IMF financing, including enhancements to the monetary policy framework and measures to improve BoG’s balance sheet transparency and oversight.
