Absa Bank Ghana and IFC announce $50m facility to expand cocoa financing
Absa Bank Ghana LTD and IFC have announced a $50 million unfunded risk participation facility to expand financing for Licensed Buying Companies purchasing traceable cocoa from farmers across Ghana.
Absa Bank Ghana, in collaboration with the International Finance Corporation (IFC), has unveiled a $50 million facility aimed at bolstering financing for cocoa-related businesses in Ghana. This risk participation facility empowers Absa Bank Ghana to provide loans to selected Licensed Buying Companies throughout the cocoa buying season, ensuring these entities maintain consistent market access.
The initiative primarily targets over 139,000 smallholder farmers who rely on this sector for their livelihoods. Backed by the Private Sector Window of the Global Agriculture and Food Security Program, the facility will extend financing to purchases of traceable cocoa sourced from farmers across the country. Furthermore, it will promote sustainable farming practices in line with the Paris Agreement on climate change.
The partnership announcement was made during a ceremonial signing event held at the World Bank office in Accra on September 16. Edward Nartey Botchway, the Managing Director of Absa Bank Ghana, emphasized the significance of this collaboration. He stated, "Ghana's cocoa sector is a cornerstone of our export economy, supporting countless farming households.
Through this partnership with IFC, we are collaborating to finance Licensed Buying Companies to secure traceable cocoa purchases throughout the buying season, thereby safeguarding reliable market access for farmers. At Absa Bank Ghana, we are committed to leveraging our expertise and resources to empower those who feed our economy and foster a cocoa value chain that is productive, sustainable, and resilient."
This partnership strengthens Absa Bank Ghana's commitment to one of Ghana's most vital export sectors. By merging the bank's local market knowledge and financing capabilities with IFC's development finance expertise, the collaboration will expand funding for the cocoa value chain, ultimately benefiting livelihoods, export earnings, and economic activity within farming communities.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
