We’ll Continue to Buy Cocoa with Syndicated Loan- Finance Minister
In a sudden turn of events, the Minister for Finance, Hon Mohammed Amin Adam has indicated that cocoa beans as the tradition has been, will be purchased with syndicated loans by the government.
He gave the update during a press briefing on August 29, 2024.
“I want to take this opportunity to clarify that as part of measures to improve the financial viability of COCOBOD, the Government for the 2024/2025 season will be sourcing funds through the syndication process and other alternative sources.”
It comes two days after the Chief executive Officer of the Ghana Cocoa Board (COCOBOD), Joseph Boahen Aidoo announced plans to break the jinx and self-finance the purchase of cocoa beans from farmers.
He said this would start on September 1, the beginning of the new cocoa season.
“For the first time in the history of COCOBOD, we want to wean ourselves from the offshore syndication. We want to self-finance this year’s cocoa purchases. Since 1992, COCOBOD has always gone offshore to borrow from a consortium of banks and 32 years is quite a good time for any human being to learn his or her lessons,” he is quoted to have said at the presser.
This was aimed at saving the company some $1.5 million.
“This year, we were planning to raise $1.5 billion, looking at interest rates last year which was over eight per cent and other costs, it means we can save about $150 million by just not going so for the first time, we will not go.”
