ACCRA: Ghana’s cocoa regulator will borrow up to US$1.5bil by September to finance 2024 and 2025 cocoa purchases and compensate for low output, two Ghana Cocoa Board (GCB) sources with knowledge of the arrangement say.The world’s second-largest cocoa producer after neighbouring Ivory Coast uses an annual syndicated loan to finance bean purchases from farmers.
It is usually agreed at the start of the season in September. But this year’s US$800mil loan faced delays due to low cocoa output so far this season.
The GCB has since withdrawn US$600mil and cancelled the remainder as the season’s cocoa output is seen almost 40% below forecast – unable to guarantee the full loan.
A second GCB source said they were confident the syndication would go through.
At least one international bank has been to Ghana to inspect cocoa farms before deciding on the offer, while another is scheduled to visit next month, the same source said.
Production is expected to recover to 810,000 tonnes next season, the sources said.
Ghana’s cocoa production has been affected by adverse weather, disease and cocoa smuggling. It is expected to be almost 40% below target in the 2023 and 2024 season, according to the GCB.
The sector regulator said it lost about 150,000 tonnes of cocoa beans to smuggling and illegal gold mining in the 2022 and 2023 season. — Reuters
