The Minority in Parliament has raised concerns over the Ghana Cocoa Board’s (COCOBOD) decision to transition to self-financing for the upcoming 2024/2025 cocoa crop season, which begins in September 2024.
COCOBOD’s CEO, Joseph Boahen Aidoo, announced on Tuesday, August 20, that the organization will not seek loans from foreign banks for the 2024/2025 season, a departure from its long-standing practice. This new strategy is projected to save the organization approximately $150 million.
For over three decades, COCOBOD has depended on offshore borrowing to finance cocoa purchases through its cocoa syndication program. However, the organization is now shifting its approach to reduce reliance on external financing.
In a statement issued on Wednesday, August 21, Minority Leader Dr. Cassiel Ato Forson criticized this decision, arguing that COCOBOD’s financial standing has deteriorated.
He described the move as “unmeritorious and face-saving,” asserting that the organization is no longer creditworthy.
Dr. Forson expressed concern that a tradition, which for 32 years has provided Ghana’s economy with reliable foreign exchange support, has been compromised by the current government.
The Minority in Parliament further claimed that the country’s cocoa sector is in a state of crisis, requiring urgent attention and a change in leadership at COCOBOD.
They accused the government of mismanaging the sector, leading to declining production and consecutive financial losses.
They also alleged that international banks rejected COCOBOD’s request for a prepayment loan in June 2024, highlighting the severity of the challenges facing the organization.
