COCOBOD predicts Ghana could lose $1 billion as global price of cocoa falls
- COCOBOD has announced a possible $1 billion loss to Ghana following a fall in the global price of cocoa
- The fall in prices has been attributed to the outbreak of the coronavirus which has affected people all over the world
- COCOBOD revealed that the likely loss could lead to challenges in paying cocoa farmers
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COCOBOD has predicted that Ghana is likely to lose $1 billion in revenue following a drop in global cocoa prices.
YEN.com.gh understands that the outbreak of the coronavirus led to a decline in cocoa prices on the world market.
This, COCOBOD explained, has stalled the current syndication process for loan facilities for the 2020/2021 crop season.
READ ALSO: Akufo-Addo announces GHC600 million soft loan packages for SMEs in Ghana
Ghanaweb.com reports that cocoa buyers have closed their windows and this could lead to difficulty in paying cocoa farmers.
COCOBOD’s Chief Executive Officer (CEO), Joseph Boahene Aidoo, revealed that his outfit is unable to syndicate the right loan for the 2020/2021 crop season.
According to him, the new development has affected the industry and it could lead to economic challenges as cocoa is the backbone of the economy.
Information available shows that Ghana’s cocoa sector creates jobs for about 800,000 rural families and produces crops valued at about $2 billion in foreign exchange every year.
Meanwhile, the Ghana Investment Promotion Centre (GIPC) has announced a possible downward review of its annual Foreign Direct Investment (FDI) target of $10 billion.
The decision was reached following the disruption of business and investment activities as a result of the coronavirus.
The coronavirus has reportedly led to a loss of global stocks to the tune of over $3 trillion just before the end of 2020’s first quarter.
READ ALSO: No one would lose their job because of COVID-19 - Ghana Employers Association
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