COCOBOD explains setback in diversification of funding strategy
In a strategic shift, the Ghana Cocoa Board (COCOBOD) has announced the discontinuation of plans to raise $400 million from international buyers to pre-finance cocoa purchases at the start of the upcoming 2023/24 Crop Season.
This decision is part of a two-prong financing approach aimed at diversifying COCOBOD’s funding sources for the annual cocoa purchases.
The initial strategy involved a pre-financing arrangement with international buyers to secure $400 million for purchases at the beginning of the season in September 2023.
These funds were intended to be bolstered by an additional $800 million loan from a syndicate of lenders by the end of November 2023.
Unfortunately, after weeks of negotiations with buyers, this arrangement has been discontinued.
Consequently, cocoa purchases since the commencement of the season have been supported by noncollateralized cocoa sales proceeds.
COCOBOD is currently actively engaged in the process of securing the syndicated loan initially planned for the 2023/24 Crop Season.
Responding to inquiries, COCOBOD officials confirmed that the Board has received a positive response from its banking partners regarding the syndicated loan.
Notably, the Cocoa syndicated Loan proposal has been submitted to Parliament for consideration and approval.
Addressing stakeholders through official channels, COCOBOD emphasized that despite the challenges faced during the early stages of the financing strategy, necessary arrangements have been made to secure sufficient funding for cocoa purchases for the ongoing year.
The Board remains optimistic about the continued success of the cocoa industry.
Stakeholders, including farmers, industry players, and the public, are reassured that COCOBOD is actively working towards securing the required funds and maintaining stability in cocoa purchases.
As the situation unfolds, COCOBOD remains committed to transparency and pledges to keep stakeholders informed of developments in this critical aspect of the national economy
