The Ghana Cocoa Board (COCOBOD) has announced a significant shift in its financing strategy for the 2024/2025 cocoa crop season, set to begin in September 2024. After 32 years of relying on offshore borrowing through its cocoa syndication program, COCOBOD will transition to self-financing, a move expected to save the organization an estimated $150 million.
Joseph Boahen Aidoo, the CEO of COCOBOD, explained the decision during a media briefing on August 20, emphasizing the need to reduce dependency on external funds. He noted that after three decades of borrowing, it is time for COCOBOD to finance its operations internally, which would bring considerable long-term benefits.
Aidoo highlighted that COCOBOD is targeting $1.5 billion for the upcoming crop season. By avoiding offshore borrowing, which previously came with interest rates exceeding 8 percent, COCOBOD stands to save over $150 million.
Addressing concerns about the pricing of cocoa, Aidoo refuted claims that COCOBOD was short-changing farmers, asserting that since 2017, the organization has been more than fair in its pricing, even maintaining prices during periods of global market downturns. He emphasized that the government and COCOBOD have consistently prioritized farmers’ welfare by ensuring fair pricing, despite fluctuations in the international market.