Parliament has approved an $800 million loan agreement between the Ghana Cocoa Board (COCOBOD) and a consortium of banks and financial institutions.

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The funds are designated for financing the acquisition of cocoa beans during the 2023/2024 Crop Season.

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This substantial loan is intended to cover approximately 47 percent of the anticipated 850,000 tonnes of cocoa beans to be procured from farmers through the Licensed Buying Companies for the upcoming cocoa season.

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Addressing concerns raised by Reuters regarding a reported $200 million borrowing by COCOBOD from cocoa traders to address funding gaps, the organization affirmed its commitment to securing adequate funds for the 2023/2024 crop season.

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COCOBOD clarified that it has implemented a two-prong financing strategy and has received firm assurances from its bankers regarding timely fund availability. Furthermore, a "Cocoa syndicated Loan" has been presented to Parliament for consideration and approval.

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The proposed disbursement of the 2023/2024 loan facility is allocated for various purposes related to cocoa purchases and operational activities.

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These include farmers' services costs, cocoa disease and pest controls, fertilizer distribution and application, farmer pension schemes, cocoa roads, industry inputs (such as jute sacks, twine, stencil ink, passbooks), child education support, and several other integral components of the cocoa industry's value chain.

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Farmers’ services cost

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– cocoa diseases and pest controls

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– fertilizer distribution and application

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– farmer pension scheme

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– cocoa roads

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– industry inputs (jute sacks, twine, stencil ink, passbooks.)

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– child education support

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Share of Net FOB

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-payments to farmers

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– buyer’s margin

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– hauler’s margin

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– international marketing operations (storage and shipping operations)

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– disinfestation/grading and sealing cost

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-finance cost

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-COCOBOD and divisions cost

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other costs/scale inspection and phytosanitary inspections

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-rehabilitation

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-planting of coffee and sheanut operations

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