ACCRA, May 26 (Reuters) – Ghana’s cocoa regulator plans to borrow $1.5 billion for 2024/25 cocoa purchases, aiming to offset low output. Sources confirmed these details on Sunday.
Ghana, the world’s second-largest cocoa producer, secures an annual syndicated loan to buy beans from farmers. Typically, banks finalize this agreement at the season’s start in September.
But this year’s $800 million loan faced delays due to low cocoa output so far this season.
COCOBOD withdrew $600 million and canceled the remaining loan as cocoa output fell 40% below forecasts.
“A request for proposal sent to banks indicates COCOBOD will borrow up to $1.5 billion next season. It is understood the banks are sizing it and together (with COCOBOD), they will decide an optimal amount,” said one COCOBOD source.
A second COCOBOD source said they were confident the syndication would go through.
One international bank has inspected cocoa farms in Ghana, with another scheduled to visit next month, according to the same source.
Sources, requesting anonymity, stated production is anticipated to rebound to 810,000 metric tons next season, barring media contact.
The decision to borrow such a substantial amount underscores the crucial role of cocoa purchases in Ghana’s economy. Additionally, Ghana cocoa purchases drive economic growth and sustain livelihoods nationwide.
Furthermore, the initiative to borrow for cocoa purchases demonstrates Ghana’s proactive approach to managing its cocoa industry. With cocoa being a major contributor to the country’s export earnings, Ghana understands the significance of investing in its cocoa sector.
read more
image source
