West African cocoa sector financing

Agricultural financing initiatives in West Africa have focused on supporting the cocoa sector through both international partnerships and domestic capital raising.

In Ghana, the International Finance Corporation (IFC) established partnerships to expand financing for smallholder farmers. This included a collaboration with Absa Bank Ghana to provide financing for the purchase of traceable cocoa, supported by the Global Agriculture and Food Security Program. Additionally, the IFC provided a US$2.4 million convertible loan to the agritech startup Complete Farmer to expand input financing and agronomy services.

To secure liquidity for harvests, industry players have increasingly utilized domestic capital markets. In Ghana, the Ghana Cocoa Board, through Cocoa Capital PLC, launched a GH¢16.3 billion financing programme comprising GH¢14 billion in commercial paper and GH¢2.3 billion in bonds. An inaugural 266-day commercial paper tranche raised approximately GH¢3.396 billion at an 11% interest rate, attracting GH¢3.586 billion in bids. While the Ghana Association of Banks welcomed the move to reduce reliance on external borrowing, industry leaders noted that success depends on transparency and managing risks from fluctuating international cocoa prices.

In Nigeria, agribusinesses are also tapping commercial paper to fund procurement and processing. Johnvents Industries Limited announced plans to raise up to N80 billion to meet working capital requirements for bulk cocoa purchases. Additionally, Sunbeth Global Concepts Limited announced plans to raise up to N150 billion through an approved N500 billion Commercial Paper Issuance Programme to finance procurement for the 2026/27 season and support a processing facility expected to begin operations in March 2027.