Ghana’s acquisition of the $800 million Cocoa Syndicated Loan is currently in limbo as banks remain skeptical about the country’s current economic standing, Vice President of Imani-Africa, Bright Simons, has said.
He said the move by the government to take loans from cocoa buyers was indicative of Ghana’s credit status.
According to him, this is the first time in 30 years Ghana has had to experience this.
“Well, you read it here many months ago, but now it is public. For the first time in 30 years, Ghana’s credit is so broken that the usual banks don’t want to do the syndicated cocoa loan. Yep. Ghana is now asking the buyers of its cocoa to give it just $400m to see “how far”,” he wrote on his Twitter/X page on November 8, 2023.
Ghana’s COCOBOD has borrowed almost $200 million from cocoa traders to finance cocoa purchases for the 2023/2024 season.
In September each year, COCOBOD secures the Cocoa Syndicated loan to finance licensed buyers who purchase cocoa from farmers for export.
Earlier this year, Bright Simons lamented the reduction in the amount that Ghana has been able to secure from the Syndicated loan since 2007.
He argued that for a country that received up to $2 billion in 2011, it is a huge downgrade to only obtain $800 million in 2023;
He said the drop in the amount for Ghana’s cocoa syndicated loan is not an indication of prudence on COCOBOD’s part but a drop in banking confidence.