A request for a loan of 1.3 billion dollars to buy cocoa tabled in Parliament
The government of Ghana is seeking parliamentary approval to lend US $ 1.3 billion to finance the purchase of cocoa for the 2020/2021 crop year.
This follows the cocoa regulator, the Ghana Cocoa Board (COCOBOD), which has given the strongest assurance that its annual cocoa syndication loan facility will continue despite the COVID-19 pandemic.
The request that was made on Monday August 10 before the House Finance Committee also results in the presentation of an additional GH ¢ 6.5 million in tax exemptions.
Therefore, after the request has been made to committee, members are expected to discuss and approve the request before the recess later this week.
At the same time, the government signed in 2019 the loan of $ 1.3 billion for the purchase of some 850,000 metric tons of cocoa beans from farmers for the 2019/2020 crop year.
The amount was a syndicated cocoa loan signed between COCOBOD and certain international financial institutions.
Earlier in the 2019 harvest season, COCOBOD increased the producer price of cocoa beans from GH ¢ 7,640 to GH ¢ 8,240 per tonne.
However, in 2019 the African Development Bank (AfDB) granted a loan facility of US $ 600 million for the development of Ghana’s cocoa sector.