Gov’t plans $1bn local-currency bond for cocoa purchases – Johnson Asiama

Governor of the Bank of Ghana, Johnson Pandit Asiama, says the government intends to raise US$1 billion through local-currency bonds to finance cocoa purchases for the 2026/27 crop season.

Speaking at the opening of the 130th Monetary Policy Committee meeting in Accra on Monday, Dr. Asiama described the move as part of broader efforts to reduce Ghana’s dependence on foreign currency funding and external lenders.

“The Government has announced its intention to raise US$1 billion through local-currency bonds to fund cocoa purchases for the 2026/27 crop season, in a significant shift to reduce reliance on dollar funding and foreign lenders,” he stated.

According to the Governor, the policy forms part of measures aimed at strengthening investor confidence and deepening the domestic financial market.

He noted that recent developments in the economy pointed to improving market confidence and stronger macroeconomic conditions despite growing external pressures.

“The successful resumption of domestic T-bond issuance earlier in 2026 signals a return of investor confidence,” Dr. Asiama said.

He disclosed that Ghana’s current account surplus for the first quarter of 2026 exceeded the corresponding 2025 figure by about US$652 million, while inflation and exchange rate conditions had improved under ongoing reforms.

Dr. Asiama also referenced recent engagements between Ghana and the International Monetary Fund over the country’s economic programme and future policy direction.

“We have also had an IMF mission visit Accra during 29 April to 15 May 2026, to conclude the sixth and final ECF review, conduct an Article IV Consultation and discuss negotiations on a 36-month non-financing Policy Co-ordination Instrument,” he noted.

The Governor said the IMF mission acknowledged Ghana’s stabilisation gains, including lower inflation, improved external buffers and stronger confidence in the cedi.

He, however, cautioned that risks from the prolonged Middle East conflict and rising global energy prices continued to threaten the economic outlook.

“The overall picture since end-March is one of a domestically resilient economy navigating an increasingly difficult external environment,” Dr. Asiama added.