By: Chidozie Nwali
The Ghana Cocoa Board (COCOBOD) has completed a significant financial obligation, settling a ₵2 billion Cedis ($165.21 million) coupon payment to investors of its restructured cocoa bills. The ministry of information said in a post on X platform on Friday.
This settlement pertains to restructured cocoa bills that were converted into bonds as part of the government’s Domestic Debt Exchange Programme (DDEP). This program, launched in 2023, aimed to make Ghana’s public debt more sustainable by reducing the government’s near-term debt servicing obligations.
For Ghana, the world’s second-largest cocoa producer, the timely payment is a critical demonstration of fiscal discipline. The cocoa sector is a cornerstone of the nation’s economy, employing approximately 850,000 farm families and generating significant foreign exchange revenue.
The successful payment brings much-needed relief to commercial banks, which were the primary holders of the restructured cocoa instruments. These institutions had faced considerable exposure and regulatory challenges during the debt exchange.
Also, the board has assured investors it will make future coupon payments of approximately ₵1.9 billion, due in 2026 and 2027, as well as the principal on schedule.
Market analysts view this development as a positive sign. By clearing its balance sheet and honoring its financial commitments, COCOBOD is expected to improve its credit standing. This could allow the institution to secure fresh funding at more affordable rates, thereby strengthening its capacity to purchase cocoa beans for the upcoming crop season.
Cocoa is one of the West African nation’s primary sources of foreign exchange, consistently generating over $2 billion annually in export revenue and contributes 2-4.5% of Ghana’s total GDP.
