The Ghana Cocoa Board (COCOBOD) has declared its intention to self-finance the upcoming 2024/2025 cocoa crop season, set to begin in September 2024.
For the past 32 years, COCOBOD has depended on offshore loans through its cocoa syndication program to fund cocoa purchases. However, the board is now opting for a strategy that minimizes reliance on external borrowing.
In a media briefing on August 20, COCOBOD CEO Joseph Boahen Aidoo stated that the new self-financing approach is anticipated to save around $150 million.
Mr Boahen Aidoo emphasized the board’s commitment to moving away from offshore financial markets, stating, “It’s time for us to finance the crop ourselves rather than borrowing from international markets. We believe this change will bring substantial benefits.”
The board is seeking $1.5 billion for the upcoming crop season and estimates that avoiding offshore borrowing will result in significant savings, given the high interest rates from the previous year.
Mr Boahen Aidoo also addressed concerns about cocoa pricing, asserting that COCOBOD has been fair to farmers.
He refuted claims that the board has been undervaluing cocoa, highlighting that since 2017, COCOBOD has maintained fair prices even during periods of market decline.
