Reason for 42% slump in Ghana 2021/22 cocoa arrivals- Gov’t grabbed syndicated loan

The 42% slump in cocoa arrivals from Ghana as at February 03, according to information available to woezor.tv from sources within the financial market, is because the Ghana Government utilized proceeds from the cocoa syndicated loan.

“Unfortunately, COCOBOD was given GoG papers to exchange and asked to rather borrow more locally. This is why they were unable to buy enough beans.

Reuters reported that Ghana’s graded and sealed cocoa arrivals since the season opened on October 1, 2021 has reached only 408,000 tonnes. This is 42% down from Ghana’s cocoa arrivals in the same period last season.

Reuters says Ghana Cocoa Board released the figures on Friday.

Woezor.tv understands that government dipped its hands into the syndicated loan “to increase its revenues and boost their cash liquidity so they can run government business”.

Enquiries in the cocoa growing areas reveal that Purchasing clerks are not getting money to pay for the cocoa beans because they have been asked to embark on prefinancing.

“Many of the farmers are not willing and ready to give their dried cocoa beans to the clerks. They want cash and carry. And that is why we as farmers are also asking Cocobod, where is the syndicated loan approved for the purchases?”, an MP from the cocoa growing Western North Region told woezor.tv.

A cocoa farmer in the Volta Region, in his reaction to the Reuters report asked woezor.tv, “if they don’t have money to pay we the farmers, what do you expect sir? During the Christmas there was no money to pay farmers, so some farmers trooped the neighbouring Togo for prompt payment”.