Ghana cocoa regulator will not raise a syndicated loan for the 2024/25 season, CEO says
Recasts with Cocobod not raising a syndicated loan in paragraphs 1-2, adds quotes in 3 and 6, and context in 4-5
By Maxwell Akalaare Adombila and Christian Akorlie
ACCRA, Aug 20 (Reuters) -Ghana's cocoa regulator Cocobod will not raise a syndicated loan for its 2024/25 cocoa season for the first time in over three decades, Chief Executive Joseph Boahen Aidoo said on Tuesday.
He added that the season would open on Sept. 1, earlier than usual, with a reduced target of 650,000 tonnes.
"We are not taking funds from cocoa traders," Aidoo told reporters at a press conference. "The money will come locally. We are going to be self-financing."
Ghana has financed bean purchases from farmers with an annual syndicated loan since the 1992/93 season.
Cocobod paid a record 8% interest on its loan last year. Aidoo said self-financing would save the regulator $150 million in interest to lenders.
"Worse case (scenario), we will do a cocktail of self-financing and domestic financing," he said.
Aidoo attributed the 2024/25 target, reduced by around 20% from an earlier prediction of 810,000 tonnes, to lack of rain.
Ghana, the world's second cocoa producer behind Ivory Coast, witnessed one of its poorest harvests in a decade in the 2023/2024 season, attributed to harsh weather conditions resulting from El Nino, rampant smuggling and swollen shoot disease.
The opening of the cocoa season, when farmers are authorised to start selling their cocoa beans at a price set by the regulator, is usually in October.
Last year, the government brought forward the start of the new season after increased smuggling of beans to Ivory Coast and Togo contributed to a lower than expected total output.
Ghanaian cocoa farmers said they expect a boost in the 2024/2025 season thanks to improved weather and some farms rehabilitated after diseases and illegal gold mining.
Reporting by Maxwell Akalaare Adombila and Christian Akorlie;
Writing by Anait Miridzhanian and Sofia Christensen; Editing by Susan Fenton and Sandra Maler
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.