The Minority in Parliament has criticized the Ghana Cocoa Board (COCOBOD) for its decision to move towards self-financing for the 2024/2025 cocoa crop season, set to begin in September 2024.
On August 20, COCOBOD CEO Joseph Boahen Aidoo announced that the organization would no longer borrow from foreign banks for the upcoming season, a shift expected to save approximately $150 million. For the last 32 years, COCOBOD has relied on offshore borrowing through its cocoa syndication program to finance cocoa purchases, but now aims to reduce its dependence on external funds.
In a statement issued on August 21, Minority Leader Dr. Cassiel Ato Forson criticized the decision, calling it “false, unmeritorious, contrived, and face-saving.” He argued that the move was an attempt to hide the fact that COCOBOD is no longer considered creditworthy. Forson accused the government of destroying a long-standing tradition that has reliably supported Ghana’s economy with foreign exchange.
The Minority further claimed that Ghana’s cocoa sector is in crisis and requires competent management and a new direction for COCOBOD. They accused the government of mismanagement, leading to seven consecutive years of declining production and losses, and highlighted the sector’s importance to the Ghanaian economy. They also alleged that in June 2024, international banks rejected COCOBOD’s request for a prepayment loan to finance cocoa purchases.