The Ghana Cocoa Board (COCOBOD) has firmly denied allegations that it was rejected by international banks in its bid to secure a $1.5 billion loan for the upcoming 2024/2025 cocoa crop season.

The denial comes amid claims from the Minority in Parliament, who have raised concerns about COCOBOD's financial health, asserting that international lenders had declined the board’s loan request, casting doubt on the organization's management.

In response to these assertions, COCOBOD issued a statement on Friday, August 22, categorically rejecting the claims made by the Minority.

According to the board, the allegations of loan rejection are baseless and misrepresent the facts. COCOBOD clarified that international banks had, in fact, responded positively to their earlier Request for Proposals (RFP), submitting term sheets for the loan in question.

“The assertion by the Minority Caucus that the international banks have rejected the Ghana Cocoa Board’s request and that COCOBOD was ‘chased away’ from the market is false,” the statement read.

It emphasized that COCOBOD continues to engage with financial institutions, noting that “nothing in this process indicates a lack of confidence in COCOBOD’s creditworthiness from these financial institutions.”

The Minority's concerns stemmed from what they perceive as diminishing confidence in COCOBOD's management and financial mismanagement in recent years. They argued that the alleged refusal of the loan request was a troubling sign of the organization's declining reputation on the international stage.

In their view, COCOBOD’s decision to seek domestic funding instead of relying on external syndicated loans was a ‘face-saving’ maneuver to hide deeper financial troubles.

COCOBOD, however, strongly refuted these claims, calling them “falsehoods, inaccuracies, and misrepresentations.” The board explained that while it is indeed shifting towards self-financing as part of a long-term strategy, this decision does not reflect financial instability but rather a move toward reducing dependency on high-interest syndicated loans. COCOBOD described the Minority’s narrative as “categorically untrue.”

The organization also pointed out that, despite its intentions to wean itself off syndicated borrowing, it still has existing contracts that require fulfillment through this process. COCOBOD is, therefore, continuing to engage with international banks to honor these commitments.

Ultimately, COCOBOD reassured the public that it remains financially sound and that its decision to transition toward domestic funding is part of a broader strategy aimed at long-term stability for Ghana's cocoa sector. The board reiterated its commitment to fulfilling its financial obligations and maintaining confidence among its international partners.