Ghana’s COCOBOD, the industry regulator for the world’s second-largest cocoa producer, has borrowed between $150 million and $200 million from cocoa traders to finance bean purchases for the 2023/24 season.
This move was necessitated by a delay in securing a bank loan for the season.
The industry regulator traditionally secures an international syndicated loan each September to finance licensed buyers who purchase cocoa from smallholder farmers for export.
For the current season, Cocobod plans to borrow $1.2 billion, with $800 million from a syndicate of lenders and $400 million from other sources.
Due to delays in the syndication process, Cocobod sought interim support from traders to bridge the funding gap.
These borrowed funds will be repaid from the proceeds of the season’s cocoa harvest. Specific amounts accessed so far were not disclosed.
COCOBOD’s Fiifi Boafo mentioned that parliamentary approval processes for the $800 million syndicated loan would begin this week, after which Cocobod would proceed with partner banks for signing the agreements.
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