Ghana’s Cocoa Board (Cocobod) has announced a significant shift in its financing strategy for the upcoming 2024/25 cocoa season. For the first time in over three decades, the regulator will not be raising a syndicated loan to purchase cocoa beans from farmers.
Chief Executive Joseph Boahen Aidoo revealed this decision at a press conference on Tuesday, adding that the season would commence earlier than usual, on September 1st, with a reduced target of 650,000 tonnes.
The move marks a departure from Cocobod’s longstanding practice of securing annual syndicated loans to fund bean purchases. Last year, the regulator paid a record interest rate of 8% on its loan. By self-financing, Cocobod expects to save a substantial $150 million in interest payments.
The reduced target for the 2024/25 season, down from an earlier prediction of 810,000 tonnes, can be attributed to insufficient rainfall. Ghana, the world’s second-largest cocoa producer after Ivory Coast, experienced one of its poorest harvests in a decade during the 2023/2024 season due to harsh weather conditions, smuggling, and diseases.
Despite the challenges of the previous season, Ghanaian cocoa farmers remain optimistic about the prospects for the upcoming season. Improved weather conditions and rehabilitated farms are expected to contribute to a more productive harvest.