COCOBOD ends offshore loans for cocoa bean purchases after 32 years

Ghana Cocoa Board (COCOBOD) has announced an ending to over three decades of reliance on offshore loans to purchase cocoa beans.

Starting from the 2024/2025 cocoa season, which begins in September, COCOBOD will no longer borrow from foreign banks to finance its cocoa purchases. Instead, it will buy directly from traders.

This decision was revealed by COCOBOD’s chief executive officer, Joseph Boahen Aidoo, during a press conference held in Accra on Tuesday (20 August)

Speaking at a press conference on Tuesday (21 August) in Accra, Boahen Aidoo emphasised that the COCOBOD is now financially capable of self-funding the procurement of cocoa beans, which was previously financed through offshore loans.

“For 32 years, we have been relying on foreign loans to buy our cocoa beans. We are now in a position to generate enough funds internally, without relying on external borrowing,” said Aidoo.

He added that the move will shield the country from paying hefty interest rates to foreign creditors, and the financial gains from cocoa purchases will now flow directly to COCOBOD.

This decision comes at a time when Ghana, the world’s second-largest cocoa producer, is seeking ways to reduce its reliance on foreign financing amidst a challenging global economic landscape.

By leveraging its own financial resources, COCOBOD aims to strengthen its position in the international cocoa market and ensure more stable returns for the country’s cocoa farmers.

The new approach is expected to provide substantial relief to Ghana’s economy, which has faced rising debt levels in recent years.

Reporting by Caleb Ahinakwah in Accra

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