Ghana Cocoa Board (COCOBOD) plans to borrow up to $1.5 billion by September to finance 2024/25 cocoa purchases and offset low output.
Ghana, which is the world’s second-largest cocoa producer, after Ivory Coast, secures an annual syndicated loan at the start of the season in September to fund bean purchases from farmers.
COCOBOD has already withdrawn $600 million from its loan but cancelled the rest due to cocoa output being nearly 40% below forecast, making it impossible to secure the full amount.
COCOBOD has requested proposals from banks to borrow up to $1.5 billion for the next season.
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The banks and COCOBOD will determine the optimal loan amount, with confidence that the syndication process will be successful.
According to the dailymailgh news, one international bank has visited Ghana to inspect cocoa farms before making an offer, and another bank will visit next month.
Production is expected to rebound to 810,000 metric tons next season, according to sources who asked to remain anonymous. COCOBOD did not respond to a request for comment.
Adverse weather, disease, and smuggling have significantly impacted this cocoa season, with production expected to fall nearly 40% short of the 2023/24 target.
COCOBOD reported losing around 150,000 tons of cocoa beans to smuggling and illegal gold mining, or galamsey, during the 2022/23 season, with even greater losses expected this season due to rising global cocoa prices.
The swollen shoot virus has damaged about 590,000 hectares of farmland from 2018 to 2024, according to COCOBOD.
Daily Mail’s NewS portal reported that despite these issues, a source is optimistic that Ghana will achieve next season’s target of 810,000 tons due to improved weather and farm rehabilitation efforts.
