Ghana’s cocoa industry is set to benefit from up to $200 million in financing following new partnerships between the International Finance Corporation (IFC), Absa Bank Ghana Ltd and Ghanaian agricultural technology company Complete Farmer.
The initiative is expected to strengthen cocoa purchases across the country while improving farmers’ access to finance, digital agricultural services, traceability and sustainable production.
According to a joint statement issued by the partners, the financing will support Licensed Buying Companies (LBCs) to purchase cocoa from farmers throughout the buying season, providing reliable market access and income security for tens of thousands of smallholder farmers.
Financing cocoa purchases for 139,000 farmers
Under the main financing arrangement, the IFC and the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP) are providing up to $50 million through an unfunded risk participation facility.
The arrangement will enable Absa Bank Ghana to provide up to $200 million in credit to Licensed Buying Companies, allowing them to finance the purchase of traceable cocoa directly from farmers during the season.
The facility is expected to benefit more than 139,000 smallholder cocoa farmers by helping to ensure consistent market access and timely purchases of their produce.
The financing will also require cocoa purchases to meet traceability and sustainability standards in line with the objectives of the Paris Agreement on climate change.
Ghana’s cocoa industry remains a key pillar of the national economy, supporting nearly 800,000 registered farmers and providing livelihoods for millions of people.
Absa Bank Ghana Managing Director, Edward Nartey Botchway, said the partnership would help strengthen the cocoa value chain and protect farmers’ access to the market.
“Ghana’s cocoa sector carries thousands of farming households and anchors our export economy. Through this partnership with IFC, we are financing Licensed Buying Companies to purchase traceable cocoa across the buying season — protecting reliable market access for farmers. At Absa Bank Ghana, we believe our expertise and capital are at their best when they are working for the people who feed our economy, and for a cocoa value chain that is productive, sustainable and resilient.”
IFC backs digital agriculture through Complete Farmer
Alongside the cocoa purchasing facility, the IFC is also investing in agricultural technology through a partnership with Complete Farmer.
Through the Business Investment Financing Facility (BIFT), the IFC is providing Complete Farmer with a $2.4 million convertible loan, together with $660,000 in advisory and grant support.
The funding will be used to expand Complete Farmer’s digital agricultural platform, which links farmers with buyers, financial institutions, input suppliers and other agricultural service providers.
The company aims to reach 240,000 farmers and expand access to financial services by 2030.
Complete Farmer CEO, Desmond Koney, said the partnership would help address the financing challenges facing farmers with the capacity to expand their operations.
“For us, this partnership is about making finance work better for farmers. Too many farmers with the capacity to grow commercially still struggle to access the financing they need to do so.
Over the years, we have focused on building the technology, data and market infrastructure that makes it possible to better understand farmers, support their production and connect what they grow to real demand. Our partnership with IFC allows us to build on that foundation and scale our input financing model, so that more farmers have the resources and support they need to grow sustainably and participate more meaningfully in agricultural markets.”
Partnerships target wider agricultural growth
The two initiatives are designed to tackle financing challenges at different stages of Ghana’s agricultural value chain, ranging from commodity purchasing to providing farmers with inputs and other services.
The projects also support the broader World Bank Group’s agricultural agenda in Ghana and the objectives of AgriConnect, which seeks to mobilise private investment, strengthen food security and create employment opportunities in rural communities.
IFC Division Director for West Africa Gulf of Guinea, Nathalie Kouassi Akon, said the partnerships would address several financing gaps across the agricultural sector.
“These partnerships address different gaps across the value chain, from financing cocoa purchases to helping farmers access inputs, services, finance, and buyers. Together, they demonstrate how private investment can support a more productive and resilient agricultural sector.”
By: Prince Martey-Sogar