COCOBOD to Borrow Up to $1.5 Billion for 2024-25 Cocoa Purchases*

Ghana's cocoa regulator, COCOBOD, is set to borrow up to $1.5 billion by September to finance the 2024-25 cocoa purchases and compensate for low output. This move comes after the previous $800 million loan faced delays due to low cocoa output this season.

According to sources, COCOBOD has withdrawn $600 million and canceled the remainder of the loan as the season's cocoa output is expected to be almost 40% below forecast. The regulator is confident that the syndication will go through, with international banks already inspecting cocoa farms to decide on the offer.

Ghana's cocoa production has been affected by adverse weather, disease, and cocoa smuggling, leading to a significant decline in output. The sector regulator reported a loss of around 150,000 tons of cocoa beans to smuggling and illegal gold mining in the 2022-23 season, with expectations of even greater losses this season due to the global rise in cocoa prices.

Despite these challenges, COCOBOD is optimistic that Ghana will meet its target of 810,000 tons next season, thanks to improved weather conditions and rehabilitated cocoa farms.

The news comes as Ghana's cocoa export revenue fell nearly 50% year-on-year in the first four months of the year, according to central bank data.

Credit: Myjoyoline.com