Parliament greenlights $800M loan for COCOBOD to procure cocoa beans

Parliament has granted approval for an $800 million loan agreement between the Ghana Cocoa Board (COCOBOD) and a consortium of banks and financial institutions.

The loan is earmarked to fund the purchase of cocoa beans for the upcoming 2023/2024 Crop Season.

COCOBOD plans to utilize the funds to acquire approximately 47 per cent of the anticipated 850,000 tonnes of cocoa beans from farmers through Licensed Buying Companies during the upcoming season.

Addressing concerns raised by a Reuters report suggesting that COCOBOD had borrowed up to $200 million from cocoa traders to address a funding gap, COCOBOD clarified that it has implemented a two-prong financing strategy.

The strategy aims to secure ample funds for the 2023/2024 cocoa purchasing season. COCOBOD asserted that it has received firm assurances from its bankers regarding the timely availability of funds for the procurement season.

Additionally, a “Cocoa syndicated Loan” has been presented in Parliament for consideration and approval, according to a statement released by COCOBOD.

SOURCE: NEWS AGENCIES