Cedi Gains Power as Government Raises Cocoa Prices and COCOBOD Ditches Syndicated Loans for 2025/2026 Season

bernard boateng
Aug 5
3 min read

Ghana’s local currency continues its bullish run, with notable year-on-year gains against major foreign currencies:

USD/GHS – ₵10.52 (Down by 29.76% from ₵14.98 in August 2024)
EUR/GHS – ₵11.98 (Down by 26.62% from ₵16.33)
GBP/GHS – ₵13.93 (Down by 27.25% from ₵19.15)

Commodity prices are easing for consumers as well:

Closeup Toothpaste (160g): ₵17.00 (Down by 5.88% from ₵18 in Dec 2024)
This Way Chocolate Drink (10 strips): ₵38.00 (Down by 15.56% from ₵45 in Dec 2024)

ADUG: Vehicle Price Reductions to Delay Until 2026

The Automobile Dealers Union of Ghana (ADUG) says significant reductions in vehicle prices may only materialise fully in 2026. This follows the Bank of Ghana’s recent monetary policy rate cut from 28% to 25%, as well as the ongoing appreciation of the cedi against the dollar.

While these factors have bolstered optimism, ADUG President Kwaku Boateng explained that most dealers still hold inventory imported at higher exchange rates, making immediate price reductions commercially unfeasible.

“About 90% of our vehicles were imported when the dollar was much stronger,” Mr. Boateng said. “We are urging the public to exercise patience as the benefits of this economic stability will become more evident in 2026.”

The Union praised the BoG’s rate cut as a positive signal for business, highlighting its potential to reduce borrowing costs and stimulate economic activity across the automotive sector.

Government Hikes Cocoa Producer Price to $5,040 Per Tonne

Finance Minister Dr. Cassiel Ato Forson has announced a significant increase in the producer price of cocoa, setting it at $5,040 per tonne for the 2025/2026 crop season, a 62.58% rise from the previous $3,100 per tonne.

The new price ensures that Ghanaian cocoa farmers receive approximately 70% of the Free-On-Board (FOB) value, fulfilling President Mahama’s pledge to improve farmers’ earnings and uphold fairness in the cocoa sector.

With an average exchange rate of GH¢10.25 to the dollar, this translates to GH¢51,660 per tonne or GH¢3,228.75 per bag of cocoa. The price adjustment will take effect on August 7, 2025.

This bold move not only boosts farmer incomes but also positions Ghana competitively on the global cocoa market amid rising commodity prices.

COCOBOD Ends Reliance on Syndicated Loans for Cocoa Financing

In a shift from long-standing financial practices, the Ghana Cocoa Board (COCOBOD) has clarified that it will not seek syndicated loans to finance cocoa purchases for the 2025/2026 crop season.

Jerome Kwaku Sam, Head of Public Affairs at COCOBOD, explained that global cocoa shortages and a focus on cost-saving measures have rendered the syndicated loan model unnecessary for now.

“For the past two seasons, we’ve avoided syndicated loans. This decision stems from both market conditions and a desire to minimize additional costs,” Mr. Sam stated in an interview with Eyewitness News.

The move comes at a time when Ghana’s cocoa sector is undergoing strategic realignments to adapt to global supply dynamics. While the Finance Ministry hinted at the sustainability challenges of the syndicated loan model, no alternative financing framework has been officially announced yet.

Investor’s Insight: Cement Market Poised for Growth

Ghana’s cement market is projected to expand from US$1.64 billion in 2022 to US$1.96 billion by 2027, representing a 3.6% CAGR. Rising infrastructure developments and robust housing demand drive this growth trajectory.

As the government ramps up public infrastructure projects and urbanisation accelerates, the cement sector stands out as a promising investment opportunity. Industry players are encouraged to leverage this growth trend by expanding distribution networks and exploring innovation in sustainable cement production.