No offshore syndicated loan for 2024/25 cocoa crop season – COCOBOD declares

The Ghana COCOBOD has announced that it will not for the first time in three decades raise money through offshore syndicated loan to finance the purchase of cocoa beans for the 2024/2025 crop season.

Targeting about 650,000 metric tonnes of cocoa beans for the season, COCOBOD said it will be able to finance the purchase from its internal operations.

Speaking at a press briefing, Chief Executive, Joseph Boahen Aidoo said there is an elaborate plan to wean COCOBOD off loans with high interest rate from offshore lenders.

He emphasized that it is not financially prudent for COCOBOD to continue relying on loans from international banks, when it has the capacity to directly raise money from the country at a relatively cheaper rate to buy the beans.

“For the first time in the history of Ghana COCOBOD, we want to wean COCOBOD off from offshore syndication. We want to be self-financing. Since 1992 COCOBOD has been going offshore to borrow from a consortium of banks. It is a good time to learn our lessons”.

Mr. Boahen Aidoo insisted that COCOBOD can self-finance its operations and purchases, providing all the proceeds it will accrue to the government of Ghana for other developmental projects.

“In the previous year, COCOBOD has paid interest of more than US$150 million. That money could have been used for other things in the country”, he said.

Defending the decision, he stressed that move has received all the support of major stakeholders in the sector to make the farmer the ultimate beneficiary in the value chain.

“We have always being looking out for the interest of the farmer. The farmer is the most important person. Ghana and Ivory Coast pushed for the Living Income Differential of 400 dollars per tonne for the farmer”, he recalled.

Meanwhile Mr. Boahen Aidoo announced that the 2024/2025 crop season will start from 1st September this year.