Banking sector capable of financing cocoa purchases – John Awuah

By: Eugene Dogbatse Atsu

The Chief Executive Officer of the Ghana Association of Banks and Chairman of Cocoa Capital PLC, John Awuah says Ghana’s banking sector has the capacity to finance cocoa purchases, despite concerns over the size of the domestic financial market.

He made the remarks during an interview on Channel One TV’ on Monday, September 28, 2026, where he explained that the financing structure for the 2026/27 cocoa season does not require the entire GH¢16.3 billion needed by the Ghana Cocoa Board (COCOBOD) to be raised at once.

According to him, the funds will be mobilised in stages as the cocoa purchasing cycle progresses, allowing financial institutions to provide funding based on the requirements at each stage.

“So Cocoa Capital, as we speak now, is in the market to raise GH¢16.3 billion. But if you look at the map, you’ll find that the funding structure is not to look for GH¢16 billion at one go,” he said.

Mr Awuah said the cycle-based approach would reduce the pressure on individual banks because they would not be required to commit the full financing amount immediately.

He explained that the staggered funding structure would allow banks to participate without having to make an immediate financial outlay equivalent to the total funding requirement.

“So irrespective of the size of the balance sheet of the banks, because it’s a cycle funding process, you’re not going to have to have an immediate outlay that is equivalent to the funding requirements. But it’s going to be in stages,” he explained.

Mr Awuah further noted that Ghana could have relied more on domestic financing for cocoa purchases in previous years if economic conditions had been more favourable.

He attributed the earlier challenges to high interest rates, inflation and exchange-rate volatility, which made local financing more expensive and difficult for financial institutions.

He also expressed support for the move towards domestic cedi financing, arguing that it would help reduce the currency mismatch created when cedi-denominated cocoa purchases are financed with foreign-currency liabilities.

“Personally, I have strongly been against this international syndication. Common accounting practice or principle says you match your assets and your liabilities,” he said.