Japan International Cooperation Agency (JICA) and other Development Finance Institutions (DFIs), have commenced disbursement of a US$600 million credit facility for COCOBOD’s Productivity Enhancement Programmes (PEPs).
The amount expected to hit the COCOBOD account as the first tranche is US$200 million.
Ending of 2019, a consortium of DFIs and commercial lenders signed a US$600 million syndicated receivables-backed loan facility with Ghana Cocoa Board (COCOBOD), to boost cocoa productivity in Ghana.
The consortium comprises JICA, African Development Bank (AfDB), Development Bank of Southern Africa (DBSA) and Cassa Depositie Prestiti Spa (CDP), and commercial finance agencies such as Credit Suisse AG’s London Branch and the Industrial and Commercial Bank of China’s London branch.
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He however admitted that there are challenges with the country’s cocoa production, as well as with the systems in place for the processing and the distribution of cocoa.
COCOBOD’s CEO, Joseph Boahen Aidoo said: “As the second largest cocoa bean producing country in the world, Ghana fulfills a major part of supplying the demand around the world.”
Joseph Boahen Aidoo admitted that there are challenges with the country’s cocoa production, as well as with the systems in place for the processing and the distribution of cocoa.
“By strengthening the cocoa bean-centric agricultural value chain and related industries, the finance will help COCOBOD to contribute to achieving SDG Goals 1 (no poverty), 8 (decent work and economic growth) and 12 (responsible consumption and production),” he stated.
COCOBOD is expected to use the facility to raise cocoa yields per hectare and increase Ghana’s overall production. These include financial interventions to sustainably increase cocoa plant fertility, improve irrigation systems, and rehabilitate aged and disease-infected farms.
The funds will also help increase warehouse capacity and provide support to local cocoa-processing companies.
