The Ghana Cocoa Board (COCOBOD) has dismissed claims by the Minority that international banks have rejected COCOBOD’s request and that COCOBOD was “chased away” from the market.
A statement signed by the Chief Executive Officer of COCOBOD, Joseph Boahen Aidoo, said that COCOBOD has taken note of the press release issued by the Minority in Parliament on 21st August 2024, which contains several falsehoods, inaccuracies, and misrepresentations regarding the current state of the cocoa sector and COCOBOD’s decision to wean itself off syndicated external borrowing to create more value for farmers.
He further explained that the assertion by the Minority Caucus that international banks have rejected COCOBOD’s request and that COCOBOD was “chased away” from the market is false.
This is because syndicated banks submitted term sheets in response to COCOBOD’s earlier Request for Proposals (RFP) for consideration.
Indeed, notwithstanding COCOBOD’s intentions to wean off syndicated transactions, there are still committed contracts that need to be fulfilled through the syndicated process.
These transactions have necessitated discussions with financial institutions, and nothing in this process indicates a lack of confidence in COCOBOD’s creditworthiness from these financial institutions.
“For the avoidance of doubt, the proposed decision to explore non-syndicated funding is part of a broader strategy to diversify our sources of funding, making the Board more self-financing and sustainable in the medium to long term, thereby deriving more value for farmers and retaining more value within the Ghanaian economy,” he said.
The CEO of COCOBOD further explained that the Minority’s claim that COCOBOD’s decision to source funding domestically is a “face-saving” measure to hide its financial difficulties is categorically untrue.
“The Minority cannot deny that this same period of financial challenges has witnessed massive investments in key innovations, interventions, and productivity enhancement programs, including the digitization of cocoa farmer households and farms into a comprehensive cocoa farmer database, a national cocoa traceability system, pruning of cocoa farms, hand pollination, the introduction and use of motorized pruner-slasher machines, and the rehabilitation of cocoa swollen shoot virus diseased (CSSVD) farms—a fundamental debilitating condition that the NDC government under former President John Mahama failed to address.”
COCOBOD urged the public to disregard the Minority’s press release, which seeks to politicize a strategic and forward-thinking policy decision.
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.
Source: Kwame Kulenu
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