Parliament approves $ 1.3 billion credit for buying cocoa beans

Submitted by Ghana's Deputy Finance Minister, Kweku Kwarteng, to the credit facility of $ 1.3 billion, the equivalent of about 6.29 billion cedis, between the Ghana Cocoa Board (COCOBOD ) and the banking consortium composed of, among others, ABN AMRO Bank of the Netherlands, the Bank of China, the Industrial and Commercial Bank of Ghana and the Standard Chartered Bank, was approved on Wednesday. According to Dr Mark Assibey Yeboah, chairman of the finance committee in the Ghanaian parliament who presented a report on the project, thanks to these funds, the institution in charge of the management of the sector, could proceed as it sees fit, to the purchase of cocoa beans for farmers for the current crop year. The funds will also be used to cover buyer margins as well as internal marketing and farmer services. Dr. Yeboah recalled that the operation responds to one of COCOBOD's main roles in buying, marketing and exporting cocoa and cocoa products produced in Ghana.

Emphasizing the need to support the cocoa sector, the parliamentarian recalled how important this product is for the country's economy. Representing 10% of Ghana's GDP, the cocoa industry has made a significant contribution to Ghana's economic development and created jobs for millions of Ghanaians, also serving as a major source of foreign exchange for the country, said Dr. Mark Assibey Yeboah . He then called for combating the persistent decline in cocoa yields that he explained by various factors.

Expected Improvements

Ghanaian parliamentarians did not approve the financing facility without recommendations or remarks. John Jinapor raised the weak involvement of local banks in the consortium. He called for promoting local processing to limit exports, saying that if foreign banks agree to participate in the consortium, it is because they are seduced by the price element and the interest rate of the loan. Still on foreign banks, Alhaji Inusah Fuseini, for his part, spoke about the relevance of the tax exemption granted to the consortium banks indicating that this exemption only adds additional charges to the state in the long term. 19659002] As for Kwame Asafo-Adjei, he called on COCOBOD to work to strengthen the fight against pests, diseases and aging cocoa orchards that pull production down. This issue needs special attention, the MP insisted.

Remember that this is not the first time that COCOBOD has used a banking consortium to finance the purchase of cocoa beans. Already last year, in early August, Parliament had authorized an identical transaction, also involving $ 1.3 billion.