Ghana is in talks with cocoa traders like Singaporean food and agri-business Olam Group Ltd. and Swiss chocolate and cocoa products producer Barry Callebaut AG to secure a $400 million loan to support its cocoa industry operations for the 2023 to 2024 season. The Ghana Cocoa Board, the industry's regulatory body, is seeking pre-financing for activities such as seedlings, chemicals, fertilizers, and cocoa bean procurement from farmers. Half of the targeted loan amount has reportedly been secured from these companies. This financing comes at an estimated cost of around 5%, a more favorable option compared to government loans.
Cocobod typically secures loans at attractive rates from investors, but the ongoing government debt restructuring has complicated the loan process this year. The industry has resorted to borrowing between $150 million and $200 million from cocoa traders to bridge the funding gap. Once approved by parliament, Cocobod will proceed to work with partner banks to finalize and sign the $800 million syndicated loan agreements, underscoring the significance of the cocoa industry to Ghana's economy.