Ghana’s Cocoa Board (Cocobod) has successfully implemented a new funding model for the 2024/25 crop season, streamlining cocoa purchases and eliminating previous challenges.
The new model, which requires global traders to pay upfront for a portion of bean shipments, has replaced the decades-old system of syndicated loans. This shift has significantly improved the efficiency of the cocoa sector.
Under the previous system, delays in loan disbursements often led to disruptions in the supply chain, leaving farmers without timely payments and encouraging smuggling. The new model has eliminated these issues, ensuring timely payments to licensed cocoa buyers (LBCs) and improving their turnaround time and profitability.
Cocobod CEO Joseph Aidoo highlighted the benefits of the new model, stating that it has reduced interest costs and eliminated the need for borrowing beans from farmers. The model’s flexibility allows licensed buyers to utilize their own funds or secure financing from partner traders to purchase cocoa directly from farmers.
Despite initial concerns about potential disruptions, the new system has functioned smoothly, with no reported delays in payments to farmers. This year, Ghana aims to achieve a cocoa production of 650,000 metric tons through various initiatives such as rebuilding disease-infested farms, increased pruning, and hand pollination.