Kwabena Mintah Akandoh, the Juaboso lawmaker, has criticized the Ghana Cocoa Board (COCOBOD) for its poor performance in cocoa production. He stated, “Cocobod has abysmal records as far as cocoa production is concerned,” in response to COCOBOD’s decision to cease relying on loans.
The Minority in Parliament had previously expressed serious concerns about COCOBOD’s financial status, alleging that international banks rejected the board’s request for a loan to purchase cocoa for the upcoming 2024/2025 crop season. This situation, they argued, reflects a significant decline in the confidence that global financial institutions have in COCOBOD under its current management.
In a statement signed by Minority Leader Dr. Cassiel Ato Forson, the group pointed out that the denial of the loan request underscores the mismanagement and poor financial decisions that have plagued COCOBOD in recent years. They emphasized that COCOBOD has historically relied on offshore syndicated loans to finance cocoa bean purchases, but the latest rejection indicates a loss of trust in the organization’s financial management capabilities.
Joseph Boahen Aidoo, the CEO of COCOBOD, announced that, for the first time in three decades, the organization will not secure offshore syndicated loans to fund cocoa bean purchases for the upcoming season. COCOBOD aims to procure approximately 650,000 metric tonnes of cocoa beans and plans to finance this entirely through its internal operations.
The Minority MPs warned that this situation could have dire consequences for the cocoa sector, a vital component of Ghana’s economy. They cautioned that without adequate funding, COCOBOD might struggle to meet its purchasing targets for the upcoming season, which could adversely affect cocoa farmers and the economy at large.
The Minority called on the government to tackle the root issues contributing to this loss of confidence in COCOBOD. They urged a review of the current management practices and the implementation of measures to restore the organization’s credibility with international financial institutions, thereby ensuring the stability and strength of the cocoa sector.
“For the first time in 32 years, International Banks have rejected Ghana Cocoa Board’s (COCOBOD) request for a prepayment loan to finance the purchase of cocoa,” the statement noted.
They also pointed out that in June 2024, COCOBOD had issued a Request for Proposal for a $1.5 billion loan to purchase up to 650,000 metric tonnes of cocoa for the 2024/2025 crop year. However, this request failed to attract interest from international banks, attributed to COCOBOD’s poor financial health and the decline of the cocoa sector under its current management.
Furthermore, the statement highlighted a drastic drop in cocoa production, stating, “From a production level of 969,000 metric tonnes inherited from the NDC in the 2016/2017 crop year, cocoa production has declined to just a little over 400,000 metric tonnes for the 2023/2024 cocoa season.” This significant reduction in production over the past eight years, combined with mismanagement, has hindered COCOBOD’s ability to fulfill its contractual obligations.
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