Ghana Cocoa Board (COCOBOD) has announced a significant shift in its financing strategy, marking the end of over 30 years of reliance on offshore loans for cocoa bean purchases.
Beginning with the 2024/2025 cocoa season commencing in September, COCOBOD will transition to direct procurement from traders, eliminating the need for foreign borrowing.
COCOBOD’s Chief Executive Officer, Joseph Boahen Aidoo, announced this during a press conference in Accra on August 20, 2024.
Aidoo highlighted that COCOBOD has achieved financial stability sufficient to self-fund its cocoa procurement, which had previously been dependent on international loans.
“For 32 years, we have relied on foreign loans to purchase our cocoa beans. We can now generate sufficient internal funds, removing the need for external borrowing,” Aidoo stated.
The shift is expected to shield Ghana from the high interest rates associated with foreign loans and ensure that financial gains from cocoa transactions remain within COCOBOD.
This decision aligns with Ghana’s broader efforts to reduce dependence on foreign financing amid a challenging global economic environment.
As the world’s second-largest cocoa producer, Ghana aims to leverage this new approach to strengthen its position in the international cocoa market and provide more stable returns for local farmers.
The move is anticipated to offer significant economic relief to the country, grappling with rising debt levels in recent years.
