Ghana secures $2b syndicated loan for cocoa sector

The Ghana Cocoa Board (COCOBOD) has clinched a record syndicated loan deal of $2 billion for the purchase of cocoa in the country and other cocoa activities.

The signing ceremony took place in London where earlier this year top officials of COCOBOD met to make presentations to major banks to secure the loan.

Over 80 banks, most of them from Europe, played diverse roles to make the deal possible.

They include Citi Bank, HSBC Bank, Bank of Tokyo-Mitsubishi, UniCredit Bank, Standard Chartered Bank, Ghana International Bank and Societe General, among others.

Seventy per cent of the Free On Board (FOB) amount will directly go to farmers in terms of produce prices.

According to the Deputy Chief Executive of the COCOBOD, Mr William Mensah, the remaining 30 per cent will go into the expansion of the cocoa industry.

He explained that there was the need to build and rehabilitate of feeder roads in the cocoa-growing areas, the need to allocate money for a farmers’ pension scheme and scholarships for wards of cocoa farmers, and the need to improve cocoa seeds and introduce more improved varieties.

Mr Mensah said part of the 30 per cent would go to the government by way of export duties, among others.

The Chief Executive of COCOBOD, Mr Tony Fofie, who signed for his outfit, indicated that the signing was a clear manifestation of the trust the banks reposed in the cocoa economy of Ghana.

For him, the signing came at a time when banks were facing huge challenges in the banking industry with some of them collapsing.

Mr Fofie said COCOBOD had exhibited a high sense of integrity and commitment towards all agreements in previous deals and was not in any arrears of past loans.

He acknowledged that the deal was not only historic in terms of the record figure but also for the fact that no other institution in the cocoa industry worldwide had clinched the feat.

Mr Fofie noted that COCOBOD had built effectively on the success year by year and would continue to work hard to achieve high economic feats for the country.

According to him, the government is supporting the institution in an expansion programme to help boost the nation’s economy.

The Chairman of the Board of Directors of COCOBOD, Mr Percival Kuranchie, said the government was determined to use the industry to boost the nation’s economy and, therefore, the expansion project had become very necessary.

Ghana’s High Commissioner to the UK, Professor Kwaku Danso Boafo, expressed delight at the deal and asked COCOBOD to work hard to provide good results.

Source: Daily Graphic

1 Comment
  1. Gh says

    Why Cocoaboard continue to borrow every year to make cocoa purchases, where is their profit when the season is over.
    This company need restructuring throughout the whole organization. Should be publicly traded so that the corrupt menaice will be held accountable.

Leave A Reply

Your email address will not be published.