Parliament approves $800m cocoa syndicated loan for COCOBOD
Parliament has given its nod to a $800 million cocoa-syndicated loan, greenlighting the Ghana Cocoa Board (COCOBOD) to procure cocoa from local farmers.
The approved funds are earmarked to acquire nearly half of the projected 850,000 tonnes of cocoa beans for the upcoming 2023/2024 cocoa season through Licensed Buying Companies.
However, the approval was not without reservations from the Minority Leader in Parliament, Dr. Cassiel Ato Forson who expressed concerns about the financial health of COCOBOD, citing warnings from the International Monetary Fund (IMF) and stressing the need for urgent measures to rectify the institution’s trajectory.
Dr. Forson disclosed that the IMF had underscored the imperative for the government to formulate a policy document to address the challenges facing COCOBOD. Despite these reservations, he conceded that the approval was granted primarily to avert potential hardships for cocoa farmers.
During the deliberations, Dr. Bryan Acheampong, the Minister for Agriculture, defended the loan. He attributed COCOBOD’s financial strains to its commitments in the infrastructure sector, including road construction and ensuring the availability of electricity.
Dr. Acheampong underscored the dilemma faced by COCOBOD, torn between maintaining financial stability and meeting public expectations for essential services and infrastructure development.
The approval of the loan, despite the reservations, underscores the delicate equilibrium between supporting vital sectors and ensuring the financial resilience of key institutions.
