Ghana Saves $120 Million on Cocoa Syndicate Loans-COCOBOD CEO
Ghana has made a significant saving of $120 million by opting out of expensive syndicate loans from foreign sources to purchase cocoa, according to COCOBOD CEO, Mr. Joseph Boahen Aidoo.
This development comes as COCOBOD adopts a zero-borrowing arrangement to finance cocoa purchases for the 2024/2025 crop season, a departure from its previous reliance on costly foreign loans.
Mr. Aidoo recently engaged with cocoa farmers in Antoakrom, Obuasi, and Adansi Akrofuom Constituency in the Ashanti region, urging them to vote for the NPP government, which has demonstrated commitment to safeguarding Ghana’s cocoa industry.
This innovative financial model is expected to reduce financial pressure on COCOBOD and ensure more sustainable operations.
Historically, COCOBOD secured offshore syndicated loans at interest rates as low as 1.5% in 2016, but recent years have seen a sharp increase to 8%.
The organization’s inability to secure international financing at favorable rates has led to a shift towards local financing, despite higher interest rates and mounting debt.
Source: Ghana/otecfmghana.com/Prince Atta- Boateng
