Refusal For Offshore Syndicated Loan Strategic – COCOBOD

Joseph Boahen Aidoo

The Ghana Cocoa Board (COCOBOD) has called on the public to disregard assertions by the minority in parliament that COCOBOD’s decision not to raise money through offshore syndicated loan stems from the rejection of request from international banks.

A statement signed and issued by the Chief Executive of COCOBOD, Joseph Boahen Aidoo, on Thursday August 22, 2024 said the minority’s assertion contained several ‘falsehoods’

“The proposed decision for the company to explore non-syndicated funding is part of a broader strategy to diversify its sources of funding to make the Board more self financing and sustainable in the medium to long term in order to derive more value for farmers and retain more value within the Ghanaian economy,” it said.

It said not withstanding its intentions to wean off syndicated transactions; COCOBOD still has committed contracts that need to be fulfilled through the syndicated process.

According to COCOBOD, the transactions have necessitated a discussion with financial institutions and said nothing in the process indicates to them a lack of confidence in COCOBOD’s credit worthiness from these financial institutions.

It also stated that the Minority’s claim that the Board has made continuous losses is highly uninformed, and that COCOBOD made a loss of GHS4.2billion in 2023 is false and that COCOBOD’s 2023 accounts audited by Ernst Young (EY) show a profit of GH¢2.3 billion during the 2022/2023 Crop Season, marking a significant turnaround from the Previous year’s performance.

It said the financial success is a demonstration of the effectiveness of the strategic initiatives undertaken by COCOBOD, – cost cutting measures, improved operational efficiency, and targeted investments in key areas of the Cocoa sector.

It said while recent production levels have faced structural challenges, including adverse weather conditions due to last year’s devastating El Nino force majeure and the impact of the CSSVD, COCOBOD has implemented significant interventions and mitigation measures.

“The Minority is fully aware that the future of Ghana’s cocoa has been secured with the successful rehabilitation of 74,813 farms spanning 67,385.43 hectares, owned by 56,105 farmers. These farms now thrive with hybrid, disease-tolerant cocoa varieties that have started bearing fruits, and the volume of cocoa from these farms will continue to increase in the years ahead” it stated

The Chief Executive therefore urged the public to disregard the Minority’s press release, which seeks to politicise a strategic and forward-thinking policy decision adding that the Board remains focused on its mandate to sustain and grow the cocoa industry, ensuring that it continues to contribute meaningfully to Ghana’s economy and the livelihoods of cocoa farmers across the country.

It noted, “COCOBOD invites all stakeholders, including members of the Minority, to engage in constructive dialogue and collaboration to support the continued growth and development of Ghana’s cocoa sector”.

By Ebenezer K. Amponsah

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