The Ghana Cocoa Board (COCOBOD) faced a setback in its attempt to secure a $1.5 billion loan from the international market for the purchase of cocoa beans for the 2024/2025 crop year.
International creditors avoided dealing with COCOBOD, citing concerns over its financial instability and mismanagement. This development leaves cocoa farmers, who have harvested beans ready for the market, in a predicament as they may now have to seek buyers independently.
A statement from the Minority in Parliament highlighted that this rejection marked the first time in 32 years that COCOBOD faced such a snub, attributing it to the board’s declining creditworthiness and credibility.
The statement pointed out that COCOBOD’s incapacity to fulfill its contractual commitments due to financial constraints and production uncertainties contributed to the banks’ decision.
The Minority Leader, Dr. Cassiel Ato Forson, signed the statement, which detailed COCOBOD’s ongoing financial challenges, including significant losses over the past seven years.
The figures show a troubling trend of financial losses under the Akufo-Addo/Bawumia administration, highlighting the sector’s decline in recent years.
Despite COCOBOD’s claim that it decided not to seek international funding for cocoa purchases, the NDC Minority in Parliament denounced this assertion as misleading.
They emphasized that COCOBOD’s inability to supply the required cocoa volumes and its reliance on rollovers for contractual obligations demonstrated a sector in crisis under the current government’s management.
The NDC further lambasted the NPP administration for its failure to address the cocoa sector’s challenges, stressing the need for competent management and fresh strategies to revive the industry.
They criticized the government’s handling of the cocoa sector, highlighting a substantial drop in production and consecutive financial losses as evidence of mismanagement.
Overall, the situation underscores the pressing need for a thorough review and revitalization of Ghana’s cocoa sector to ensure its sustainability and economic importance.