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COCOBOD Denies Claims of Loan Rejection by International Banks

Comfort Sweety Hayford by Comfort Sweety Hayford
1 year ago
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The Ghana Cocoa Board (COCOBOD) has dismissed claims made by the Minority in Parliament regarding its decision to reduce reliance on syndicated external loans, calling the accusations misleading and inaccurate.
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The Ghana Cocoa Board (COCOBOD) has dismissed claims made by the Minority in Parliament regarding its decision to reduce reliance on syndicated external loans, calling the accusations misleading and inaccurate.

The Minority alleged that COCOBOD was forced to abandon its pursuit of syndicated loans after being rejected by international banks, but COCOBOD refuted this, clarifying that banks had positively responded to its proposals, showing no loss of confidence in its creditworthiness.

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COCOBOD explained that its shift away from syndicated loans is a strategic move aimed at diversifying funding sources and increasing value for Ghanaian cocoa farmers, noting that this decision is part of a broader strategy to enhance financial sustainability, rather than a reaction to financial difficulties, as suggested by the Minority.

In response to claims that COCOBOD recorded a GHS4.2 billion loss in 2023, the Board pointed to audited reports showing a profit of GHS2.3 billion for the 2022/2023 crop season with improvement attributed to cost-cutting, operational efficiency, and targeted investments.

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The Board also addressed criticisms about declining cocoa production, highlighting that Ghana achieved its highest-ever cocoa yield in the 2020/2021 crop season.

Recent production challenges were attributed to adverse weather and the Cocoa Swollen Shoot Virus Disease (CSSVD). COCOBOD noted that it has rehabilitated over 67,000 hectares of affected farms, many of which are now yielding cocoa.

COCOBOD rejected claims that the current government has neglected the cocoa sector, highlighting investments in infrastructure, farm inputs, and productivity programs.

The Board emphasized that previously converted cashew farms are being returned to cocoa cultivation under the current administration, therefore urging the public to disregard the Minority’s statement, characterizing it as an attempt to politicize a strategic policy decision.

The Board remains focused on sustaining and growing Ghana’s cocoa industry and called for constructive dialogue among stakeholders to support its development.

Read Statement Below:

Press Release on Strategic Policy Shift – 22_08_2024Download

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