The Minority in Parliament has expressed serious concerns regarding the financial health of the Ghana Cocoa Board (COCOBOD), alleging that international banks have rejected the organization’s request for a loan to finance cocoa purchases for the 2024/2025 crop season.
In a statement released on August 21, 2024, Dr. Cassiel Ato Forson, the Minority Leader, highlighted that this rejection reflects a growing lack of confidence in COCOBOD’s current management.
The statement contends that the loan request’s denial underscores ongoing issues of mismanagement and poor financial decision-making within the organization.
Traditionally, COCOBOD has relied on offshore syndicated loans to fund the procurement of cocoa beans.
However, this year’s refusal by international banks indicates a significant erosion of trust in COCOBOD’s financial stewardship.
COCOBOD’s Chief Executive Officer, Joseph Boahen Aidoo, recently announced that, for the first time in 30 years, the organization will not secure offshore syndicated loans for the 2024/2025 crop season.
Instead, COCOBOD plans to finance the purchase of approximately 650,000 metric tonnes of cocoa beans entirely through internal resources.
The Minority MPs cautioned that the inability to secure the necessary funding could adversely affect the cocoa sector, a vital component of Ghana’s economy.
They warned that COCOBOD might struggle to meet its purchasing targets for the upcoming season, which could negatively impact cocoa farmers and the broader economy.
In their statement, the Minority urged the government to address the issues contributing to losing confidence in COCOBOD.
They called for a review of the current management practices and recommended measures to restore the organization’s credibility with international financial institutions to ensure the stability of the cocoa sector.
The statement noted that COCOBOD’s request for a $1.5 billion loan in June 2024, aimed at purchasing up to 650,000 metric tonnes of cocoa, failed to attract interest from international banks.
This rejection is attributed to COCOBOD’s deteriorating financial health and the perceived collapse of the cocoa sector under its present management.
The statement also highlighted a dramatic decline in cocoa production, from 969,000 metric tonnes in the 2016/2017 crop year to just over 400,000 metric tonnes for the 2023/2024 season.
This decline and alleged mismanagement have reportedly impaired COCOBOD’s ability to fulfil its financial obligations.
