The Coalition for Cocoa Sector Reforms (CCSR-Gh) has expressed excitement over the $1.13bn Syndicated Loan signed by the Ghana Cocoa Board (COCOBOD) and the Ministry of Finance.
The coalition believes that this will go a long way to help cocoa farmers in the country.
They said it is insightful to note that, the industry has contributed over 25bn to this economy in terms of syndicated loans over the past 30yrs. This is quite significant and remarkable. It justifies the magnificent importance of the industry to the economy, more importantly, this period of depreciating currency.
COCOBOD on Monday October signed the Receivables-Backed Trade Finance Facility (Syndicated Loan).
The Chief Executive of COCOBOD, Joseph Boahen Aidoo, said during the signing ceremony that despite the challenges facing the cocoa sector, brought on by the global financial difficulties, the sector has once again shown leadership.
He assured the lenders of the effective and efficient use of the funds.
The Minister for Finance, Ken Ofori-Atta, also said the signing puts the nation’s finances in the right landing zone and gives impetus for optimism in the Ghanaian economy.
COCOBOD received $1.13 billion instead of the $1.3 billion as approved by Parliament.
This agreement is to purchase cocoa and finance other industry costs within the 2022/2023 crop year.
COCOBOD has signed a USD1.13 billion Receivables-Backed Trade Finance Facility (Syndicated Loan) to purchase cocoa and finance other industry costs within the 2022/2023 crop year. 1/3 pic.twitter.com/2s5KX5Gb3R
— Ghana Cocoa Board (@ghcocobod) October 3, 2022
In a statement reacting to this news, CCSR-Ghana said “We received with no surprise but much relieve and ecstacy the information on the acquisition of the $1.13bn syndicated loan by COCOBOD. The CCSR-GH wish to congratulate COCOBOD and the Ministry of Finance for their efforts in the arrangement.
“This successful feat however is on the back of our gallant cocoa farmers. Their hard work, forbearance and sustainability efforts have been the major contributor. It is insightful to note that, the industry has contributed over 25bn to this economy in terms of syndicated loans over the past 30yrs. This is quite significant and remarkable. It justifies the magnificent importance of the industry to the economy, more importantly, this period of depreciating currency.
“We are also at a time very critical that, cocoa lands are at a trade off with galamseyers and a time of decreasing production volumes. It will only be prudent for the Producer Price Setting Committee of COCOBOD to also honour the work of farmers to boost the waning interest in the industry and resist the monetary incentives from galamsey operators.
“The time to help farmers resist galamsey is now! The cedi has depreciated by about 40% this year and about 90% since 2019 when the last increment was received. This windfall from the exchange rate differential gives room to COCOBOD to increase farm gate price.”
Their statement added “Research has shown that governments over the years have been giving farmers between $100 and $115 since 2015. If COCOBOD should decide not to increase farmer’s income amidst the increasing economic hardship, the over 37% inflation since January this year and the hikes in prices of goods and services including farm inputs, then the maintenance of the $100 dollar per bag in cedi terms must inure to the farmer. This is why we say that the ¢1,500.00 call by the Ghana National Cocoa Farmers Association (GNACOFA) be considered by both COCOBOD and farmers.
“On galamsey, farmers are ready to help government fight it if only their plea is considered. Farmers will not fall for the cash incentives of galamseyers if their plea is taken and together we will save the cocoa industry from eventual collapse.
“The Forestry Commission must also look at the remuneration for forest guards and technical officers. Their conditions of service is very poor. They work with minimum safety boots, protective clothing and ammunitions. Let’s give better remuneration and honour to these agricultural sector workers and safe the industry now or we forfeit it.
“We also call for the arrest and prosecution of galamseyers operating in the Tano-Numri forest and officials of the minerals commission who gave mining license to Akonta Mining with expiration in 2035 against the minerals and mining of natural resource act of Ghana. Long live Cocoa farmers, long live Ghana.”
By Laud Nartey|3news.com|Ghana