The Minority in Parliament has expressed serious concerns regarding COCOBOD’s financial stability, following reports that international banks have declined to approve a loan requested by the organization for the 2024/2025 cocoa season.

The opposition argued that the refusal to grant this loan is a troubling sign of diminishing confidence in COCOBOD’s management.

They believe this situation underscores ongoing issues with financial mismanagement and poor decision-making that have plagued COCOBOD in recent years.

Traditionally, COCOBOD has relied on offshore syndicated loans to fund the purchase of cocoa beans.

The latest rejection by international banks suggests a significant erosion of trust in COCOBOD’s financial stewardship.

In response, COCOBOD’s Chief Executive Officer, Joseph Boahen Aidoo, has announced that for the first time in three decades, the organization will not be able to secure offshore syndicated loans for cocoa procurement.Instead, COCOBOD plans to use its own resources to finance the purchase of approximately 650,000 metric tonnes of cocoa for the upcoming season.

The Minority has raised alarms that this development could severely impact the cocoa industry, a vital sector for Ghana’s economy.They caution that without adequate funding, COCOBOD may struggle to meet its purchasing targets, potentially harming cocoa farmers and the broader economic landscape.

The Minority has called for urgent government intervention to address the underlying issues contributing to this loss of confidence.They advocate for a review of COCOBOD’s management practices and the implementation of corrective measures to restore the organization’s credibility with international financial institutions, ensuring the stability and strength of the cocoa sector.

The statement highlights that, for the first time in 32 years, COCOBOD’s request for a $1.5 billion prepayment loan to purchase cocoa did not attract any interest from international banks.This failure is attributed to COCOBOD’s deteriorating financial health and the overall decline of the cocoa sector under the current administration.

The statement also points to a dramatic drop in cocoa production from 969,000 metric tonnes in the 2016/2017 crop year, inherited from the previous administration, to just over 400,000 metric tonnes for the 2023/2024 season.This significant reduction in production, combined with mismanagement, has affected COCOBOD’s ability to fulfill its contractual obligations."For the first time in 32 years, International Banks have rejected Ghana Cocoa Board’s (COCOBOD) request for a prepayment loan to finance the purchase of cocoa."

"In June 2024, COCOBOD issued a Request for Proposal of $1.5 billion loan to purchase up to 650,000 metric tonnes of cocoa for the 2024/2025 crop year. But this request did not attract any interest from the international banks due to the poor health of COCOBOD and the collapse of the cocoa sector under its present management.

"From a production level of 969,000 metric tonnes inherited from the NDC in the 2016/2017 crop year, cocoa production has declined to just a little over 400,000 metric tonnes for the 2023/2024 cocoa season. The significant decline in cocoa production in the last eight years and the mismanagement of the cocoa sector have impacted COCOBOD’s ability to meet its contractual obligations," an excerpt of the statement said.

Read statement below:

MinorityLeader.CocoaLoan.CrisisDownload