Cocobod, the governing body of cocoa trade in Ghana, faces a funding challenge this season due to delays in securing a $1.2 billion loan.
To bridge the gap, the regulator has obtained $150-200 million from traders to facilitate bean purchases from smallholder farmers for international export.
This move comes as Cocobod navigates a delay in its traditional syndicated loan process, aiming to ensure uninterrupted operations until the full loan’s approval by seeking interim support from traders.
“We engaged with some of the buyers to…give us capital for some of the purchase so that the capital is taken care of when we supply them the beans,” Reuters quoted Fifi Boafo Head of Public Affairs at Cocobod as saying.
The report further said he did not give a specific amount accessed so far.
The borrowed funds are set to be repaid post-harvest, reflecting Cocobod’s temporary reliance on traders’ support to sustain the country’s crucial cocoa industry.
SOURCE: DAILY MAIL GH with additional files from Reuters