Ghana Borrows Up To $200m From Cocoa Traders As It Struggles To Get Syndicated Loan From Banks

• Cocobod has borrowed some $200 million from cocoa traders to finance bean purchases
• Anane Boateng, the president of the Ghana National Cocoa Farmers Association, expressed concerns about the issue to YEN.com.gh
• Parliament is expected to begin approval processes for the agreements on the $800 million syndicated loan this week

Cocobod has borrowed up to $200 million from international cocoa traders because of challenges in securing a bank loan.

Every September, the board normally draws on an international syndicated loan to finance licensed buyers who purchase cocoa from smallholder farmers for export.

Cocobod plans to borrow $1.2 billion for the 2023/2024 season. of which $800 million will come from a syndicate of lenders.

Reuters reported that Cocobod has said parliament would start approval processes for the agreements on the $800 million syndicated loan this week

Read also

Myanmar fighting blocks key trade routes with China

Anane Boateng, the president of the Ghana National Cocoa Farmers Association, said this situation would put cocoa farmers in a very difficult situation.

In an interview with YEN.com.gh, Boateng said it was time for a rethink of the regime where cocoa farmers can only sell to the government.

"Cocoa farmers, we don’t have any resource anywhere apart from the cocoa business we do, so if government delays payment, it will seriously affect us.”

"It is so sad that every year, the government goes for a syndicated loan… if that is the case, then government should let cocoa farmers sell our product to anybody at all,” he remarked.

Ghana increases cocoa farm gate price to GH¢1,308 per bag

President Nana Akufo-Addo has announced GH¢1,308 as the new producer price per bag of cocoa.

Read also

DDEP is just like an autocratic military regime - Justice Akuffo slams gov't again

President Akufo-Addo said this was the highest price to be paid to cocoa farmers across West Africa in a while.

Former President John Mahama downplayed the development, saying the cocoa sector had been mismanaged.

Mahama criticises new hike

Former President John Mahama was unhappy with the new GH¢1,308 producer price per bag of cocoa.

In a statement on Facebook, Mahama described the new prices as a rip-off of cocoa farmers.

Mahama takes on Akufo-Addo over appointment of judges

YEN.com.gh reported in separate criticism that Mahama has accused President Akufo-Addo of appointing several NPP judges to courts.

The former president believes President Akufo-Addo is appointing NPP judges to avoid being held accountable in the future.

Mahama urged National Democratic Congress lawyers to consider careers as judges in Ghana’s judiciary.

Source: YEN.com.gh