Government approves $800 million loan for COCOBOD.
The government has granted approval for an $800 million loan agreement between the Ghana Cocoa Board (COCOBOD) and a consortium of banks and financial institutions. This loan is intended to finance the procurement of cocoa beans for the upcoming 2023/2024 Crop Season.
Approximately 47 percent of the anticipated 850,000 tonnes of cocoa beans for the season will be acquired from farmers through the Licensed Buying Companies.
In response to concerns raised by Reuters regarding a reported $200 million loan from cocoa traders to address funding gaps, COCOBOD clarified that it has implemented a two-prong financing strategy with the objective of ensuring sufficient funds are secured for the 2023/2024 cocoa season.
The statement from COCOBOD reassures that concrete measures have been taken, including firm assurances from bankers regarding timely fund availability. Additionally, a “Cocoa syndicated Loan” has been presented in Parliament for consideration and approval.
The 2023/2024 loan facility disbursement is proposed to be utilized for cocoa purchases and related operations as listed below:
Farmers’ services cost
– cocoa diseases and pest controls
– fertilizer distribution and application
– farmer pension scheme
– cocoa roads
– industry inputs (jute sacks, twine, stencil ink, passbooks.)
– child education support
Share of Net FOB
-payments to farmers
– buyer’s margin
– hauler’s margin
– international marketing operations (storage and shipping operations)
– disinfestation/grading and sealing cost
-finance cost
-COCOBOD and divisions cost
other costs/scale inspection and phytosanitary inspections
-rehabilitation
-planting of coffee and sheanut operations
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