The Chief Executive Officer (CEO) of the Ghana Cocoa Board (COCOBOD), Mr. Joseph Boahen Aidoo, has said that the decision to finance cocoa purchase for the 2024/2025 crop season through zero borrowing arrangement made the sector more viable and sustainable.
Speaking at the bi-weekly Minister’s Briefing organised by the Ministry of Information in Accra, Aidoo explained that the zero borrowing arrangement marked a major shift from the existing system of financing cocoa purchase over the years through loans from external sources, and constituted a new financing innovation designed to reduce the cost of borrowing to the board.
He said that under the new zero financing arrangement, international buyers would pay directly into the Cocoa Marketing Company’s account on behalf of COCOBOD.
According to him, this system effectively eliminates the previous arrangement where funds were raised overseas through syndicated loans, which had become increasingly expensive.
“The financing arrangement being pursued now is a homegrown model, and so far, so good,” he said.
“We are unburdened with any interest and ancillary costs, which significantly reduces the financial pressure on the industry,” the report by the Ghanaian Times quoted Aidoo as saying.
He added that the COCOBOD had within the last few years undertaken a number of measures to enhance the cocoa sector while adopting a lot more of innovation in its operations.
GIK/APA