Ghana Cocoa Board Struggles to Secure Syndicated Loan Amidst Mismanagement Allegations

…Company Borrows $400 Million without Parliamentary Approval 

In a historical show of incompetence, the Ghana Cocoa Board (COCOBOD) has found itself in an unprecedented predicament where it is unable to secure its annual syndicated loan to buy cocoa from farmers.

Facing mismanagement and a tarnished balance sheet, COCOBOD was forced to lower its target to approximately $800 million, a significant drop from the previous year’s goal of $1.2 billion has still not been able to meet the expectation.

Adding to its challenges, COCOBOD’s regular cocoa syndicated loan is now two months behind schedule.

Typically, the company secures syndication a month prior to the start of the cocoa season, making this delay a cause for concern.

It has been revealed that last year’s loan was misused to the extent that COCOBOD had to borrow an additional $400 million without parliamentary approval. Consequently, lenders are demanding higher interest rates, reflecting the increased risk generated by the mismanagement of Ghana’s cocoa sector by the government. It is clear that COCOBOD books are in disarray, leaving lenders hesitant to extend financial support without clearer financial stability and oversight.

Last year, COCOBOD fell short of its targeted cocoa purchases, resulting in an early season re-opening. Shockingly, allegations have surfaced claiming that multinational companies, seeking to gain control over the sector, purchased and hoarded last year’s cocoa with the expectation of reselling it to COCOBOD at inflated prices. Procurement irregularities and misused funds further plague the company as it struggles to overcome the repercussions of previous missteps.

The involvement of multinational cocoa buyers now raises concerns about the control they exert over COCOBOD. What was initially established as a regulatory body for the cocoa industry has seemingly fallen into the hands of these multinational entities, who allegedly benefit from the blatant disregard of Ghana’s laws. Disturbingly, reports indicate that contracts are awarded without due process, eroding transparency and putting the country’s cocoa industry at risk.

As stakeholders eagerly wait for a resolution, nefarious acts continue to undermine the integrity of Ghana’s cocoa industry. Time is of the essence, and decisive action is necessary to rescue COCOBOD from this dire situation, securing a stable future for Ghana’s valuable cocoa exports.